The EU Commission works on legislative proposals that would empower it to tackle competition distortions involving foreign government subsidies operating in or entering into the EU’s Internal Market

The European Commission (EC) is currently working on legislative proposals (the White Paper) that would grant the EC new enforcement powers to address potential competition distortions caused by companies operating in or entering into the EU’s Internal Market, which benefit from subsidies from third-country governments. In essence, the objective of the proposed White Paper is to empower the EC to tackle distortions involving foreign government subsidies currently beyond its reach as the EC can only fully challenge subsidies received from EU governments under its state aid rules. Other tools at the EC’s disposal, such as state aid control, antitrust investigations, and trade defense measures are insufficient to tackle unfair behavior of foreign-state-backed companies active in the EU.

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Christina Renner, Izzet M. Sinan, The EU Commission works on legislative proposals that would empower it to tackle competition distortions involving foreign government subsidies operating in or entering into the EU’s Internal Market, 17 June 2020, e-Competitions June 2020, Art. N° 95327

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