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HomeStudy on the simplification and review of the Foreign Subsidies Regulation (FSR)
Final report
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This study reviews the early implementation, enforcement and potential simplification of the EU Foreign Subsidies Regulation (FSR), drawing on stakeholder surveys, analysis of international subsidy control developments and Commission case practice in concentrations and public procurement. Stakeholders generally understand the FSR’s objectives, but report significant administrative burdens, delays and legal uncertainty, particularly around the broad definition and reporting of foreign financial contributions. Internationally, third-country subsidy control regimes have evolved only gradually since the FSR’s adoption, leaving the EU’s system distinctive in its comprehensive ex ante and ex post control. Regarding case practice, the Commission applies a structured, evidence-based and effects-driven methodology. In concentration cases, foreign financial contributions are frequently reported, especially by investment funds, but are rarely found to constitute distortive foreign subsidies. In public procurement, the framework appears coherent and effective, though operational challenges arise from incomplete or incorrect bidder submissions and recurring misunderstandings of notification obligations. Overall, the FSR is functioning as intended and is capable of identifying potentially distortive foreign subsidies, but targeted refinements could improve efficiency and legal certainty, including clearer guidance, more proportionate reporting obligations, adjusted thresholds and more standardised notification tools.
- Published:
- Corporate author(s): Directorate-General for Competition (European Commission) , LE Europe , data+law , Universität Wien
- Themes: Competition policy
- Subject: EU competition policy , foreign aid , foreign capital , foreign investment , public procurement , regulation (EU) , restriction on competition , simplification of legislation , State aid , third country
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| ISSN | ISBN 978-92-68-41344-9 | DOI 10.2763/8468461 | Catalogue number KD-01-26-011-EN-N |
- Released on EU publications website:
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