Commission launches consultations on guidelines under the Foreign Subsidies Regulation

The European Commission published today a Call for Evidence seeking feedback on the main objectives, scope and context of the upcoming Guidelines regarding the implementation of the Foreign Subsidies Regulation (‘FSR'). This is a first step towards the publication of the The Guidelines by 13 January 2026, as mandated by the FSR. The Guidelines will contribute to legal certainty, transparency and predictability in the Commission's enforcement of the FSR.

In parallel, the Commission has launched targeted consultations with Member States and selected stakeholders.  

The FSR Guidelines

The FSR started to apply on 13 July 2023. This new set of rules enables the Commission to address distortions caused by foreign subsidies and ensures a level playing field for all companies operating in the internal market. Prior to the FSR, subsidies granted by non-EU governments went unchecked. FSR hence complements Union's State aid rules which deal with distortions in the internal market caused by Member State subsidies.

As such, the FSR relies on certain concepts for assessing the impact of foreign subsidies on concentrations, participation in public procurement procedures and any other economic activities in the internal market. These concepts include, beyond the identification of a foreign subsidy:

1. the determination of a distortion caused by a foreign subsidy;
2. the application of a balancing test (i.e. whether positive effects counterbalance the distortive effects of the foreign subsidy);
3. the assessment of a distortion in a public procurement procedure.

While these concepts should as a general matter be applied and interpreted in light of the relevant Union legislation, notably that relating to State aid, mergers and public procurement, the Commission will publish Guidelines clarifying these concepts, as part of its ongoing implementation efforts and building on its FSR enforcement experience.

The Guidelines will also cover the application of the Commission's power to request the prior notification of concentrations or of foreign financial contributions received in public procurement, in cases that fall below the FSR notification thresholds.

Next Steps

The Call for Evidence will be available for feedback on the Commission's “Have your say” portal until 2 April 2025. All parties, who have an interest in the matter, can submit their views.

The Commission will undertake, in parallel, targeted consultations with Member States and selected stakeholders, based on a dedicated questionnaire. Those selected stakeholders represent various sectors, legal/economic professionals, authorities, academia, associations of practitioners and consumers. Based on the feedback to the Call for Evidence, the Commission may decide to invite additional stakeholders to these targeted consultations.

As a second stage, the Commission will organise a public consultation on the draft FSR Guidelines.

Background

The Foreign Subsidies Regulation came into force on 13 July 2023. The FSR enables the Commission to address distortions caused by foreign subsidies in the internal market. It allows the EU to ensure a level playing field for all companies, while remaining open to trade and investment. Foreign subsidies can reach the internal market through participation in any economic activity and in any sector, such as: acquisitions of control, participation in public procurements and other forms of direct investments.

More information will be available on the Commission's competition website and on the Commission's “Have your say” portal.