Verordnung über wettbewerbsverzerrende Subventionen – Paradigmenwechsel in der Regulierung drittstaatlicher Subventionen innerhalb der EU (Lexis Nexis, 2023)
What the new EU regulation on foreign subsidies distorting the internal market (FSR), which entered into force in Austria on July 12, 2023, entails:
Eagerly awaited by some EU stakeholders, the FSR marks a shift in paradigm in the regulation of third-country subsidies within the EU. Since October 2, 2023, a large number of transactions and public procurement procedures in various sectors must now comply with specific reporting obligations to the European Commission and potentially be subject to scrutiny in order to avoid unfair distortions of competition and high sanctions.
In their recently published article in the Österreichische Zeitschrift für Kartellrecht (ÖZK), Isabelle Innerhofer, Calvin Polterauer und Emilie Landstetter highlight the key aspects and challenges of this ground-breaking regulation and explain how the European Commission identifies and assesses foreign subsidies, the three pillars on which the FSR is based, the remedies and sanctions available and how the FSR complements the existing EU rules on merger control, state aid and foreign direct investment.
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Emilie Landstetter