This article provides an overview of the main features and implications of the EU Foreign Subsidies Regulation (FSR), which entered into force in 2023 to address the distortive effects of foreign subsidies on the EU internal market. It discusses the key concepts and thresholds for the notification and review of transactions and public procurement procedures involving foreign financial contributions, as well as the ex officio investigation tool and enforcement powers of the European Commission (EC). The article also highlights the challenges and uncertainties that the FSR poses for companies and their counsel, and the need for further guidance and clarification from the EC. The article looks at the decision practice and case law in related areas of EU law, such as State aid, trade, and competition law, to analyse the principles and procedures of the FSR.
Keywords: Foreign subsidies; EU filing; public procurement