The EU Draft Regulation on Foreign Subsidies

The European Commission published last week its draft Regulation on distortive foreign subsidies. This client alert provides a brief description of, and some practical thoughts in relation to, this likely soon-to-be-adopted Regulation.

The Regulation, once adopted, will subject some companies that have received subsidies outside the EU to new requirements including an obligation to notify the European Commission before they acquire a target that is active in the EU, and an obligation to disclose that they have received a subsidy when they participate in EU tenders.