The European Commission has published its long-awaited Guidelines on the application of the Foreign Subsidies Regulation (FSR), providing clarity on key concepts and enforcement mechanisms under the new framework. The Foreign Subsidies Regulation (Regulation (EU) 2022/2560* hereafter referred to as: FSR) – in force since 12 January 2023 and started to apply from 12 July 2023 – is a legal framework empowering the European Commission to scrutinise foreign subsidies granted by third countries to companies operating in the EU internal market. The FSR aims to address distortions caused by foreign subsidies in the internal market and allows the EU to ensure a level playing field for all companies, while remaining open to trade and investments.
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