The Foreign Subsidy Regulation (FSR)
The Foreign Subsidies Regulation (FSR) contains the main substantial and procedural rules on tackling distortive foreign subsidies on the internal market.
On 12 January 2023, the FSR entered into force and it applies since 12 July 2023. As of this date the Commission can start ex officio investigations. Since 12 October 2023, the notification obligation for concentrations and public procurement above certain thresholds applies.
On 10 July 2023, the Commission adopted the Implementing Regulation (EU) 2023/1441 (see the press release) laying down the procedures for notifying and content of notifications of concentrations and public procurement bids, rules for calculating time limits, and procedural rules on preliminary reviews and in-depth investigations in cases of suspected distortive foreign subsidies. For more information on the Implementing Regulation, see here.
- On 12 July 2023, the Commission adopted the Communication C(2023)4749 on transmitting documents to the Commission: Communication pursuant to Articles 4(2), 8(1), 15, 17(2) and 25 of Implementing Regulation (EU) 2023/1441 on detailed arrangements for the conduct of proceedings by the Commission pursuant to Regulation (EU) 2022/2560 of the European Parliament and of the Council on foreign subsidies distorting the internal market.
Legislative history of the Foreign Subsidy rules
White paper on foreign subsidies
On 17 June 2020, the Commission adopted a White paper on foreign subsidies, which launched a public debate on the topic of distortive foreign subsidies.
The adoption of the White Paper started a 14-week public consultation, which finished on 23 September 2020. The Commission has received 150 contributions: 17 from public authorities of Member States; 24 from third country stakeholders and governments; around 100 submissions from business and industry associations and individual companies; and the remainder from law firms, academic institutions, trade unions, NGOs and individual citizens.
- Summary of the consultation results
- Contributions to the public consultation
- Documents annexed to contributions
Inception impact assessment
To prepare the ground for future action, on 6 October 2020, the Commission published an Inception impact assessment, which was open for feedback until 29 October. The feedback on the Inception Impact Assessment is published here.
Between October 2020 and January 2021, the Commission gathered feedback in a targeted way from business and industry groups active in sectors that appear to be affected by foreign subsidies as well as expert groups, public authorities, representatives of SMEs, consumers as well as third-country stakeholders.
Regulatory Scrutiny Board
On 3 March 2021, the Regulatory Scrutiny Board issued a positive opinion on the Impact Assessment report accompanying the proposal.
Commission proposal for a Regulation
Political agreement reached on the Regulation
On 30 June 2022, the Council of the European Union and the European Parliament reached a political agreement on the Regulation on foreign subsidies distorting the internal market.
Adoption of the Regulation by Council and Parliament
On 6 February 2023 the Commission invited stakeholders to give feedback on the FSR draft Implementing Regulation. Interested parties were invited to submit their comments by 6 March 2023 via the "Have Your Say" portal.