The European Commission is preparing new measures for regulating foreign subsidies

The European Commission has published guidelines for the regulation on foreign subsidies, aimed at increasing transparency and predictability for businesses. These guidelines clarify how the Commission will assess distortions of competition caused by foreign subsidies, including a two-step analysis: the first focuses on the impact of the subsidy on the competitiveness of the business in the EU, while the second looks at the effects on competitive behavior and market dynamics.

Additionally, the guidelines detail the assessment of distortions in public procurement procedures, establishing criteria to determine whether a foreign subsidy has influenced the conditions of the offer. The Commission will conduct a comparative test between the negative and positive effects of subsidies, accepting commitments or imposing corrective measures if necessary.

The regulation, in force since July 13, 2023, allows the Commission to address distortions caused by foreign subsidies, ensuring fair competition conditions in the internal market. The Commission is obliged to publish the guidelines by January 13, 2026, and to report to the European Parliament and the Council on the implementation of this regulation by July 14, 2026.