Area of focus

EU Foreign Subsidies Regulation

FSR investigations, notifications and compliance – experience that makes the difference

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Expert guidance to navigate the complexities of the EU’s transformative regulatory framework.

The EU Foreign Subsidies Regulation (FSR), effective since July 2023, marks a significant shift in the regulatory landscape for companies engaging with EU markets. Whether your business is involved in M&A, public procurement, or competing in markets potentially affected by foreign subsidies, the FSR introduces new regulatory obligations and potential pitfalls that demand careful attention. At Hogan Lovells, we combine global expertise and local insights to help you steer through the challenges that the FSR may bring.

A global impact

The FSR aims to level the playing field by addressing distortions in the EU market caused by subsidies from non-EU states. It equips the European Commission with three key tools: (1) a notification requirement for M&A transactions (similar to merger control and FDI processes); (2) a notification requirement for bids in large public procurement procedures; and (3) ex-officio powers to investigate potentially distortive market activities at its discretion.

To counteract distortive foreign subsidies, the Commission can impose redressive measures ensuring fair competition across the EU market. The Regulation applies equally to EU-based and non-EU companies.

How we can support you

At Hogan Lovells, we bring together a multidisciplinary team with deep expertise in EU competition law, state aid, public procurement, and trade regulations. With our deep understanding of the FSR gained through our early involvement in some of the key cases in this area, we deliver practical, actionable solutions tailored to your needs.

The FSR is reshaping the regulatory landscape, and early preparation is essential. Our clients worldwide trust us to guide them through these challenges and ensure FSR-readiness on all fronts. Whether you are engaging in M&A or public procurement procedures, defending against FSR investigations, or dealing with subsidized competitors, we are here to help.

Contact our dedicated FSR team to safeguard your business and seize opportunities in this transformative regulatory field.

Friction, Scrutiny and Risk: One year of EU FSR filings

Representative experience

Representing a Chinese company in an in-depth investigation opened under the FSR in a public procurement procedure.

Representing a Chinese company in one of the first ex officio investigations launched by the European Commission under the FSR.

Acting for a Japanese multinational company in the context of multiple notification procedures based on the FSR procurement rules.

Representing a JV with 4 controlling parent companies post-transaction, including an Asian trading company and an Asian State-sponsored investment fund, in the notification before the European Commission under the FSR.

Pre-notification of the acquisition of an EU based company under the FSR rules to the Commission. We successfully avoided the full notification after discussion with the European Commission.

Advising several multinational companies in setting up internal processes to ensure compliance with the FSR rules.

Counselling an Asian state-owned company on assessing and reducing its FSR exposure for participation in EU tenders (both above and below thresholds).

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