Foreign Subsidies Regulation
How does the Foreign Subsidies Regulation impact Irish businesses?
The Foreign Subsidies Regulation (FSR) ensures fair competition within the EU Single Market by allowing the European Commission to investigate financial contributions from non-EU governments. Irish businesses involved in mergers, acquisitions, or public procurement must be aware of notification requirements under the FSR. The Competition and Consumer Protection Commission (CCPC) may assist the European Commission in enforcing these rules.
What is the Foreign Subsidies Regulation?
The Foreign Subsidies Regulation (FSR) is designed to maintain a level playing field for all businesses operating within the EU Single Market. It empowers the European Commission to investigate financial contributions from non-EU governments to companies active in the EU. If such contributions are found to distort competition, the Commission can act to reduce the effects.
Although the European Commission oversees the enforcement of the FSR, the Competition and Consumer Protection Commission (CCPC) in Ireland may provide support upon request.
Do you need to notify the European Commission?
Businesses are required to notify the European Commission about mergers, acquisitions, and public procurement procedures if these fall within the thresholds set by the FSR.
For detailed guidance on what falls within the scope of the regulation and how to notify the Commission, please refer to the following resources:
Where can you find relevant legislation?
You can access the full text of Regulation (EU) 2022/2560 of the European Parliament, which outlines the Foreign Subsidies Regulation in detail.
The Statutory Instrument S.I. No. 258 of 2024 allows the Minister for Enterprise, Trade and Employment to appoint the CCPC’s authorised officers to assist the European Commission with its investigations under the Foreign Subsidies Regulation.
Irish legislation relevant to competition and consumer protection may also apply. Businesses should consult the CCPC and Irish legal sources for compliance guidance.
