The European Commission has launched 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.
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, like companies, law firms, Member States, business associations, individuals or research community and
- a call for evidence seeking more general feedback from all interested parties on the main aims of the FSR review report, its scope and context.
The review report would focus on: (i) the assessment of foreign subsidies that distort the internal market, (ii) the application of the balancing test (i.e. whether positive effects of the foreign subsidy counterbalance its distortive effects), (iii) the review of foreign subsidies with a possible distortive effect in the internal market on the Commission’s own initiative, (iv) the notification thresholds and, (v) more generally, the level of complexity of the rules and the costs incurred by businesses.
Next steps
All parties who have an interest in the matter 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 18 November 2025. The Commission will use this feedback in the FSR review report that will be presented to the European Parliament and the Council.
Background
The Foreign Subsidy Regulation started to apply on 13 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 reach the internal market through participation in any economic activity and in any sector. This includes acquisitions of control, participation in public procurement procedures and other forms of direct investments.
The FSR requires the Commission to review its practice of implementing and enforcing the Regulation by July 2026 and every three years thereafter and to present a report to the European Parliament and the Council, accompanied, if appropriate, by relevant legislative proposals.
More information
More information will be available on the Commission’s competition website and on the Commission’s ‘Have your say’ portal.
