Brussels: The European Commission has launched today its first review of the Foreign Subsidies Regulation ('FSR'). As a first step of this review, the Commission is seeking feedback from interested parties, with a deadline of 18 November 2025.
According to Emirates News Agency, the Commission aims to collect feedback through a public consultation to gather views on specific elements of the implementation and enforcement of the FSR from all interested parties, including companies, law firms, Member States, business associations, individuals, or the research community. Additionally, there is a call for evidence seeking more general feedback on the main aims of the FSR review report, its scope, and context.
The review report will focus on several key areas: the assessment of foreign subsidies that distort the internal market, the application of the balancing test to determine if the positive effects of a foreign subsidy outweigh its distortive effects, the review of foreign subsidies with a possible distortive effect in the internal market on the Commission's own initiative, notification thresholds, and more generally, the level of complexity of the rules and the costs incurred by businesses.
All interested parties can submit their views on the Call for Evidence and respond to the questionnaire in any official EU language on the Commission's Have Your Say portal until 18th November 2025. The Commission will use this feedback in the FSR review report, which will be presented to the European Parliament and the Council.
The Foreign Subsidy Regulation began to apply on 13th July 2023. This new set of rules enables the Commission to address any distortions to competition caused by foreign subsidies in the internal market. It allows the EU to ensure a level playing field for all companies while remaining open to trade and investment. Foreign subsidies can enter the internal market through participation in any economic activity and in any sector, including acquisitions of control, participation in public procurement procedures, and other forms of direct investments.
The FSR mandates the Commission to review its practice of implementing and enforcing the Regulation by July 2026 and every three years thereafter, presenting a report to the European Parliament and the Council, accompanied, if appropriate, by relevant legislative proposals.