European Commission adopts rules for implementing Foreign Subsidies Regulation

BRUSSELS, July 10 (KUNA) - The European Commission Monday adopted the Foreign Subsidies Regulation (FSR), which aims to investigate financial contributions granted by non-EU countries to companies operating in the EU.

The FSR sets out an obligation for companies to notify concentrations where the acquired company, or the joint venture is established in the Union and generates an EU turnover of at least 500 million euro (USD 540 million) and where the parties to the transaction were granted combined aggregate foreign financial contributions of at least 50 million euro (USD 54 million) over the past 3 years.
Among other things, it also sets out an obligation for companies to notify foreign financial contributions in public procurements procedures in the EU, where the estimated contract value is at least 250 million euro (USD 273 million) and the bid involves combined aggregate foreign financial contribution of at least 4 million euro (USD 4.3 million) per third country over the past 3 years.
The FSR will start to apply from Wednesday 12 July as of 12 October 2023, companies will have to notify concentrations and participation in public procurement procedures involving foreign financial contributions and meeting the relevant notification thresholds, said the European Commission in a press release today. (end) nk.aa.