Foreign Direct Investment

Mergers

The UK Government proposes to accept revised national security undertakings offered under the acquisition of a telecommunications equipment company by a Chinese radio manufacturer to ensure maintenance of the TETRA Airwave Network used by national emergency services (Sepura / Hytera)
United Kingdom’s Competition Authority - CMA (London)
Acquisition of Sepura plc by Hytera Communications Corporation Limited: revised national security undertakings* Consultation description The Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng MP, announced on 28 September 2021 that he is proposing to accept (...)

The Hungarian Competition Authority investigates a merger between two companies engaged in the wholesale of electrical products affecting the construction sector (Sonepar Magyarország Kereskedelmi és Szolgáltató / Újfa-Vill Kereskedelmi)
Hungarian Competition Authority (Budapest)
The GVH is investigating a foreign acquisition in the construction industry* The Hungarian Competition Authority (GVH) has initiated a proceeding to investigate a merger of undertakings engaged in the wholesale of electrical products, which affects construction industry development projects as (...)

The UK Competition Authority publishes its revised Merger Assessment Guidelines along with a quick guide complementing the revision of its Guidance on jurisdiction and procedure
Bird & Bird (London)
,
Bird & Bird (London)
In March 2021, the Competition & Markets Authority (CMA) published its revised Merger Assessment Guidelines (MAGs) along with a Quick Guide, complementing the revision of its Guidance on jurisdiction and procedure, which was published in December 2020. The updated MAGs underpin the CMA’s (...)

The French Government rejects an American industrial conglomerate’s acquisition of a national optronic technologies firm (Photonis / Teledyne) Free
Delcade Avocats & Solicitors (Paris)
French veto to the acquisition of Photonis par Teledyne* Applying legislative and regulatory measures to control foreign investments in France, the French Government has banned the American Teledyne from buying French Photonis. 1. France established a scheme for controlling investments made (...)

The French Government extends COVID-19 interim rules on foreign investments and rejects an American industrial conglomerate’s acquisition of national optronic technologies firm (Photonis / Teledyne) Free
Skadden, Arps, Slate, Meagher & Flom (Paris)
,
Skadden, Arps, Slate, Meagher & Flom (Paris)
France Extends COVID-19 Interim Rules on Foreign Investments and Vetoes Teledyne’s Acquisition of Photonis* On December 18, 2020, French Minister for the Economy (MoE) Bruno Lemaire announced that the COVID-19 interim rules on foreign investment control (interim rules) — which were issued on (...)

The German Government prohibits the acquisition of a telecommunications company by a Chinese industrial group on the basis of the foreign trade and payments ordinance (IMST / Addsino)
Van Bael & Bellis (Brussels)
On 2 December 2020, the German Government prohibited on public security grounds the sale of the German Institut für Mobil-und Satellitenfunktechnik (“IMST”), a specialist in satellite and communications technologies, to Addsino, a subsidiary of State-owned defence group China Aero- space Science (...)

The German Government prohibits the acquisition of a communications technology company by a Chinese communication product manufacturer (IMST / Addsino)
Hogan Lovells (Brussels)
,
Hogan Lovells (Dusseldorf)
,
Hogan Lovells (Brussels)
Foreign investment control has become a key factor in M&A deals and 2020 has been an eventful year. A large number of economies have introduced foreign investment control regimes or tightened their existing rules. Now it appears that it is time to make use of them: this week Germany has (...)

The German Government prohibits the acquisition of a telecommunication company by a Chinese buyer under the foreign direct investment rules (IMST / Addsino)
Covington & Burling (Brussels)
,
Covington & Burling (Frankfurt)
,
Covington & Burling (Frankfurt)
On 2 December 2020, the German government prohibited the acquisition of German company IMST GmbH, Kamp-Lintfort (“IMST”) by a Chinese investor. This is the second high profile prohibition decision issued by the German government this year on the grounds of Foreign Direct Investment (“FDI”) rules. (...)

The Polish Competition Authority issues first decision authorizing a foreign acquisition following its temporary FDI screening mechanism during the COVID-19 pandemic (H&F Corporate Investors VIII / The Center for Electronic Settlements Polish ePayments) Free
Van Bael & Bellis (Brussels)
On 19 October 2020, the Polish Competition Authority (“UOKiK”) issued a decision authorising the Cayman Islands-based H&F Corporate Investors VIII Ltd. to acquire the Center for Electronic Settlements Polish ePayments S.A. The transaction was not notified to the UOKiK under the normal merger (...)

The Polish Competition Authority clears the first merger under rules for protecting companies of strategic national importance during COVID-19 (H&F Corporate Investors VIII / The Center for Electronic Settlements Polish ePayments) Free
Polish Competition Authority (Warsaw)
Investment control - first decision of the President of UOKIK* H&F Fund from the Cayman Islands granted consent to take over the Center for Electronic Settlements Polish ePayments S.A. The transaction does not pose a threat to security, order or public health. This is the first decision of (...)

The EU Commission announces the broadening of the Member State referral system concerning mergers
Freshfields Bruckhaus Deringer (London)
,
Freshfields Bruckhaus Deringer (London)
,
Freshfields Bruckhaus Deringer (Brussels)
The European Commission (EC) has recently announced a change in policy to its referral system to bolster the circumstances in which it will accept referral requests from Member States under Article 22 of the EU Merger Regulation (EUMR). In particular, the EC is encouraging national competition (...)

The UK Government prohibits acquisition of a national supplier of military aircraft components on national security grounds (Gardner Aerospace / Impcross)
Cleary Gottlieb Steen & Hamilton (London)
,
Cleary Gottlieb Steen & Hamilton (London)
,
Cleary Gottlieb Steen & Hamilton (Brussels)
On 5 September 2020, the UK Government accepted undertakings from Gardner Aerospace Holdings Limited not to proceed with its proposed acquisition of Impcross Limited, a UK-based manufacturer of components for the aerospace industry (including for military aircraft). Gardner is owned by (...)

The UK Government lowers the notification thresholds of merger control relevant to national security and issues new powers of investigations
Morgan Lewis (London)
,
Morgan Lewis (London)
,
Morgan Lewis (London)
The UK government passed reforms on 21 July 2020 lowering the thresholds to intervene in mergers and acquisitions considered relevant to UK national security in the artificial intelligence, cryptographic authentication, and advanced materials sectors. Longer term the UK government is planning (...)

The UK Government introduces measures allowing it to intervene in merger transactions to mitigate the effects of public health emergencies following the COVID-19 outbreak Free
Cleary Gottlieb Steen & Hamilton (London)
,
Cleary Gottlieb Steen & Hamilton (London)
,
Macfarlanes (Brussels)
On 22 June 2020, the UK Government introduced new measures allowing it to intervene in merger transactions “to maintain in the United Kingdom the capability to combat, and to mitigate the effects of, public health emergencies." The Government will be able to intervene on these grounds in any (...)

The EU Commission proposes a merger control legislation for the acquisition of foreign-subsidized companies
Skadden, Arps, Slate, Meagher & Flom (London)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
The European Commission’s (EC) June 2020 white paper proposing wide-ranging controls over foreign-subsidized companies’ access to Europe’s internal market has received fresh impetus. In a report issued earlier this month, the European Union’s (EU) audit body faulted the EC for a hitherto (...)

The Chinese State Administration for Market Regulation accepts the first merger filing involving a variable interest entities structure (Shanghai Mingcha Zhegang / Huansheng Information Technology)
King & Wood Mallesons (Beijing)
,
King & Wood Mallesons (Beijing)
,
King & Wood Mallesons (Beijing)
Preamble On 20 April 2020, China’s State Administration for Market Regulation ("SAMR") formally accepted a filing for the Establishment of a Joint Venture between Shanghai Mingcha Zhegang Management Consulting Co., Ltd. (“SMZ”) and Huansheng Information Technology (Shanghai) Co., Ltd. ("SMZ (...)

The South African Competition Authority recommends approving an acquisition subject to several conditions (PepsiCo / Pioneer)
Primerio (Johannesburg)
South Africa: PepsiCo acquisition of Pioneer recommended for approval, at a price!* On 11 February 2020, the South African Competition Commission (SACC) recommended that PepsiCo’s acquisition of Pioneer Foods, be approved, subject to a number of conditions. Despite there being no material (...)

The German Government opposes foreign investment in an electrical infrastructure due to security concerns (State Grid / 50Hertz)
McDermott Will & Emery (Paris)
,
Norton Rose Fulbright (Brussels)
,
McDermott Will & Emery (Brussels)
Non-EU inward investors in Germany should be aware of recent developments in German Government policy towards foreign investment in strategic infrastructure and security sensitive areas. Electricity infrastructure is an area that is particularly sensitive for strategic and security (...)

The UK Government proposes greater intervention in national security and infrastructure mergers
Cleary Gottlieb Steen & Hamilton (London)
,
Cleary Gottlieb Steen & Hamilton (London)
On October 17, 2017, the UK Government published legislative proposals that would give it greater powers to intervene in mergers that raise national security considerations or involve national infrastructure. In the short-term, any transaction involving a party active in the manufacture or (...)

The UK Government publishes its green paper for consultation containing proposals to extend the national merger control public interest intervention regime
Herbert Smith Freehills (London)
,
Herbert Smith Freehills (London)
,
Herbert Smith Freehills (London)
On 17 October 2017 the Department for Business, Energy & Industrial Strategy (BEIS) published its long-awaited Green Paper National Security and Infrastructure Investment Review for consultation. The Green Paper contains proposals to extend the UK merger control public interest intervention (...)

The Chinese MOFCOM releases a company from conditions previously imposed in an e-commerce merger (Wal-Mart / Yihaodian)
China Competition Bulletin (Beijing)
,
University of Melbourne
,
University of Melbourne
On 30 May 2016, the MOFCOM decided to release Wal-Mart from the conditions that it had imposed on Wal- Mart’s acquisition of Yihaodian in 2012. Wal-Mart had applied for release from these conditions in July 2015. When the MOFCOM conditionally approved Wal-Mart’s acquisition in 2012, the (...)

The Indian Competition Authority updates its Combination Regulations
Shardul Amarchand Mangaldas (New Delhi)
,
Shardul Amarchand Mangaldas (New Delhi)
,
Shardul Amarchand Mangaldas (New Delhi)
The Indian merger control regime under the Competition Act, 2002 has been in force for nearly five years. In addition to the statutory provisions, the Combination Regulations were introduced by the Competition Commission of India in 2011 . These Regulations contain detailed rules on (...)

The EU Commission clears a global energy leader’s biggest industrial acquisition of the third-largest competitor, subject to divesting part of the gas business to the fifth largest competitor, and other remedies (General Electric / Alstom)
DG COMP (Brussels)
,
Snap Inc. (Paris)
,
DG COMP (Brussels)
General Electric / Alstom: our heavy duty* In a nutshell: The GE/Alstom merger raised concerns in relation to the supply of Heavy Duty Gas Turbines, which are expected to play an important role in the coming decades in the European energy mix. The case is interesting amongst other factors (...)

The Russian Competition Authority fines a fishing company for failing to notify a merger (Sogra)
Russian Federal Antimonopoly Service (Moscow)
Fishing company jumped the gun with buying* “Sogra” Fishing Company acquired 100% share of the authorized capital of “Magadanflot-2” without preliminary approval by the Government Commission for control over foreign investments in the Russian Federation. On 18th August 2014, the Federal (...)

The Chinese MOFCOM enforces telecom regulations in a merger review (Wal-Mart / Yihaodian)
Ingram Yuzek Gainen Carroll & Bertolotti (New York)
The notification for the Wal-Mart/Yihaodian transaction was submitted to China’s Ministry of Commerce on 16 December 2011. It was ultimately accepted on 16 February 2012 by MOFCOM after supplementation. At the expiration of the Phase III, or extended Phase II, period, on 13 August 2012, MOFCOM (...)

The South African Competition Appeal Court upholds the Competition Tribunal’s conditional clearance of a retail market acquisition (Walmart / Massmart)
Meta
On 9 March 2012, the South African Competition Appeal Court upheld the Competition Tribunal’s decision to clear the Walmart/Massmart merger conditioned to several obligations that consider public interest needs. The South African Court concluded, after several months of dispute and business (...)

The Bosnian & Herzegovinian Competition Authority issues an opinion in relation to the application of merger notification thresholds in cases involving foreign companies with or without presence on the domestic market (Schoenherr)
University of Macau - Faculty of Law (Macau)
On 29 September 2011 the Competition Authority of Bosnia & Herzegovina (KV) issued an opinion in relation to the application of merger notification thresholds in cases involving foreign companies with or without presence on the domestic market. The KV’s opinion was prompted by the request (...)

The Chinese MOFCOM publishes measures on the implementation of security review of mergers and acquisitions of domestic enterprises by foreign investors
University of Melbourne
,
China Competition Bulletin (Beijing)
,
Institute of American Studies (Beijing)
The MOFCOM published the Measures on the Implementation of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (Measures) on 25 August 2011. The Measures are effective on 1 September 2011 and replace the Interim Measures on Relevant Matters Concerning the (...)

The Chinese State Council publishes a notice detailing its national security review procedure for the acquisition of domestic companies by foreign investors
Jones Day (Shanghai)
,
Gibson Dunn (Hong Kong)
,
Jones Day (Beijing)
The State Council of the People’s Republic of China has published a notice detailing its national security review («NSR») procedure for the acquisition by foreign investors of domestic Chinese companies («NSR Notice»). The NSR Notice, which implements Article 31 of the PRC Anti-Monopoly Law, will be (...)

The Chinese State Council publishes a circular on establishing a mechanism of a security review of mergers and acquisitions of domestic enterprises by foreign investors
Pillsbury Winthrop Shaw Pittman (Beijing)
,
Pillsbury Winthrop Shaw Pittman (Beijing)
On February 3, 2011, the PRC State Council (the “State Council”) promulgated the long awaited Circular on the Establishment of Security Review Mechanisms for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (《国务院办公厅关于建立外 国投资 者并购境内企业安全审查制度的通知》) (the “State Council SR (...)

The Chinese MOFCOM issues interim measures providing clarifications on key procedural issues of the national security systems and security review notifications
University of Melbourne
,
China Competition Bulletin (Beijing)
,
Institute of American Studies (Beijing)
The MOFCOM published the Interim Measures on Relevant Matters Concerning the Implementation of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (商务部实施外国投资者并购境内企业安全审查 制度有关事项的暂行规定) (the Interim Measures) on 4 March 2011. The Interim Measures were promulgated to (...)

The Chinese State Council issues national security review rules for foreign investment
Covington & Burling (Washington)
,
Covington & Burling (Washington)
,
Covington & Burling (Beijing)
China has established a new process for reviewing the national security implications of foreign investments in Chinese companies. On February 12, 2011, China’s State Council published the “Notice of the General Office of the State Council on Establishment of a Security Review System for the (...)

The Chinese State Council establishes a national security review system for foreign takeovers
University of Melbourne
,
China Competition Bulletin (Beijing)
,
Institute of American Studies (Beijing)
The General Office of China’s State Council published the Circular on Establishing a Mechanism of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (《国务院办公厅关于建立外国投资者并购境内企业安全审查 制度的通知》) (the Circular) on 12 February 2011. The Circular was promulgated to guide the (...)

The OECD holds a roundtable on cross-border merger control and the challenges for developing and emerging economies
OECD - Competition Division (Paris)
Effective merger control of cross-border mergers requires that the countries involved have effective merger control regimes. However, this may be a challenging task in many developing and emerging economies (DEEs) given the complexities of enforcing competition law in these economies. In (...)

The Chinese State Council promulgates opinions on the promotion of mergers and the restructuring of enterprises
University of Melbourne
,
China Competition Bulletin (Beijing)
,
Institute of American Studies (Beijing)
China’s State Council promulgated the Opinions on the Promotion of Mergers and Restructuring of Enterprises (Opinions) on 28 August 2010 and published the Opinions on the Central Government website on 7 September. The Opinions state that certain industries and sectors in China have serious (...)

The Chinese MOFCOM reviews the first two years of implementing the merger control regime under the anti-monopoly law act 2007
University of Melbourne
,
China Competition Bulletin (Beijing)
,
Institute of American Studies (Beijing)
The Anti-Monopoly Bureau (AMB) of MOFCOM held a press conference on 12 August 2010 to review the first two years of implementing the AML merger control regime. Director General Mr Shang Ming introduced the enforcement and legislative work of the AMB and answered journalists’ questions. (...)

The Chinese MOFCOM issues guidelines on the computation of financial merger reporting thresholds together with two key national regulatory agencies
White & Case (Beijing)
,
Mattel (Hong Kong)
,
White & Case (Beijing)
As one of the world’s fastest growing economies, China has been a favorite destination for foreign investment since it opened its doors to foreign investors almost three decades ago. While its growth has slowed, the Chinese economy continues to grow moderately amid the global financial crisis, (...)

The Chinese MOFCOM denies the merger approval between a US leading soft drink and a national juice manufacturer (Coca Cola / Huiyuan)
Jones Day (Shanghai)
,
Jones Day (Beijing)
,
Winston & Strawn (Washington)
Today the Chinese Ministry of Commerce (MOFCOM) announced that it had denied antitrust approval of The Coca-Cola Company’s proposed acquisition of a famous Chinese Juice manufacturer, China Huiyuan Juice Group Limited («Huiyuan»). MOFCOM’s decision to block the Coke deal, after its conditional (...)

The Chinese MOFCOM prohibits for the first time since the entry into effect of the new anti-monopoly law, a merger between a US soft drinks manufacturer and a Chinese juice producer (Coca-Cola / Huiyuan)
Sidley Austin (Washington)
,
WilmerHale (Washington)
,
Kirkland & Ellis (Washington)
On March 18, 2009, China’s Ministry of Commerce (MOFCOM) announced that it had blocked Coca-Cola’s proposed acquisition of Chinese Huiyuan Juice Group Ltd. (Huiyuan) under Article 28 of China’s Anti-Monopoly Law (AML). This was MOFCOM’s first merger prohibition since the AML came into effect on (...)

The US DoJ issues long-awaited proposed regulations to implement the foreign investment and national security act of 2007
Linklaters (New York)
On April 21, the US Department of the Treasury issued long-awaited proposed regulations to implement the Foreign Investment and National Security Act of 2007 ("FINSA"). FINSA was passed in the wake of several controversial foreign investment transactions that cleared the Exon-Florio national (...)

Foreign investment: An overview of EU and national case law
Linklaters (London)
,
Linklaters (Düsseldorf)
,
Linklaters (Düsseldorf)
This foreword provides an overview of the developments of foreign investment (“FI”) regimes globally during 2020 and, more specifically, highlights the trends over the year in the area of FI. Historically, the European Union (“EU”) has had one of the most open investment regimes in the world and (...)

Foreign Investment: An overview of EU and national case law
Akin Gump Strauss Hauer & Feld (London)
,
Akin Gump Strauss Hauer & Feld (London)
,
Akin Gump Strauss Hauer & Feld (London)
Foreign investment restrictions and National Security laws have become important tools in States’ foreign policy-making, as well as a topic of great interest for investors, politicians, lawyers and economists alike. The US, through the Committee on Foreign Investment in the United States (...)

State Aid

The EU Commission opens an in-depth investigation into an arbitration award in favor of a private equity firm to be paid by Spain (Antin)
DG COMP (Brussels)
State aid: Commission opens in-depth investigation into arbitration award in favour of Antin to be paid by Spain* The European Commission has opened an in-depth investigation in order to assess whether an arbitration award, to be paid by Spain in favour of Antin as compensation for the (...)

The EU Commission approves a €20 million French State aid scheme with private investors support for companies affected by the COVID-19 outbreak Free
DG COMP (Brussels)
State aid: Commission approves French guarantee scheme mobilising up to €20 billion support from private investors for companies affected by coronavirus outbreak* The European Commission has approved, under EU State aid rules, a French State guarantee scheme to support the economy in the (...)

The EU Commission issues its State aid guidance on national recovery and resilience plans and makes it clear that all investment projects must comply with State aid rules Free
Jones Day (Brussels)
,
Jones Day (Paris)
,
Jones Day (Madrid)
In Short The Situation: The European Commission has launched its largest ever stimulus package to support recovery of EU economies from the COVID-19 pandemic’s unprecedented economic and social disruption. Each EU Member State must submit a recovery plan and funding requests for Commission (...)

The EU Commission expands Temporary Framework to a recapitalization and subordinated debt measures to further support the economy in the context of the COVID-19 outbreak Free
DG COMP (Brussels)
State aid: Commission expands Temporary Framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak* The European Commission has adopted a second amendment to extend the scope of the State aid Temporary Framework (...)

The EU Commission introduces a Temporary Framework which enables governments to offer extensive State-backed loans to the aviation industry affected by COVID-19 Free
Shearman & Sterling (Frankfurt)
,
Shearman & Sterling (London)
,
Shearman & Sterling (London)
Although the EU’s introduction of a Temporary Framework has enabled governments to offer extensive State-backed loans, the airline industry needs more than just credit—it will need equity. However, State aid to the aviation industry is strictly regulated by the European Commission (the (...)

The EU Commission allows under EU State aid rules an important project of common European interest notified by several Member States to cooperate for the development of innovative products (IPCEI)
Maastricht University
* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

The EU General Court annuls a State aid decision from the Commission concerning the food production sector in Romania (Micula)
Van Bael & Bellis (Brussels)
On 18 June 2019, the General Court of the European Union (the “General Court”) handed down its long-awaited judgment in the Micula case (Cases T-624/15, T-694/15 and T-704/15, European Food and Others v Commission, EU:T:2019:423). The case finds its origins in the investment made by the Miculas, (...)

The EU Commission concludes that aspects of UK controlled foreign company rules constitute unlawful State aid
Morgan Lewis (London)
,
Morgan Lewis (London)
,
Morgan Lewis (London)
This article has been nominated for the 2020 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. The European Commission has published a summary of its findings in its state aid investigation into the U.K.’s controlled foreign company (CFC) finance company (...)

The EU Commission opens an in-depth investigation into UK statutory rules exempting some financing incomes earned by foreign subsidiaries
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (London)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
On 26 October 2017, the European Commission (the Commission) opened an in-depth investigation into UK statutory rules that exempt certain financing income earned by foreign subsidiaries of UK corporate taxpayers from UK tax. The Commission’s investigation will focus on whether the UK Controlled (...)

The US Government positions itself as a supporter of Ireland regarding the EU Commission’s tax ruling (Apple)
United Nations (New York)
Digesting the Apple tax ruling* Commissioner Vestager’s edict on Apple’s tax arrangements in Ireland sent forceful ripples through both sides of the Atlantic on August 30th, 2016. The European Commission is no stranger to ruffling corporate and sovereign feathers, most famously by blocking the (...)

The West African Economic and Monetary Union Competition Authority finds that Togo infringed regional State aid law by taking actions that favor an undertaking to the detriment of its competitors doing business in the common market (Asky)
Max Planck Institute for Innovation and Competition (Munich)
1 Introduction and background This contribution reports on a case related to State Aides decided by the Competition Commission of the West African Economic and Monetary Union (WAEMU). The decision, ASKY, raises issues at the cross-road of trade, regional integration and competition law. WAEMU (...)

The EU Council signs a Free Trade Agreement with the South Korean Government containing for the first time WTO+ rules on subsidies that are enforceable through bilateral dispute settlement with commercial sanctions
DG COMP (Brussels)
,
DG COMP (Brussels)
,
Kluge (Oslo)
EU-Korea FTA: a stepping stone towards better subsidies’ control at the international level* On 15 October 2009 a free trade agreement (FTA) between Korea and the EU, the EU’s first with a trading partner in Asia, was initialled. It is the most ambitious FTA ever negotiated by the EU, containing (...)

The EU Commission requests a phasing out of Spain’s export-related tax incentives
Attela (Tallinn)
,
European Commission - Legal Service (Brussels)
"Commission requests phasing out of Spain’s export related tax incentives"* On 22 March 2006 the Commission proposed, pursuant to Article 88(1) of the Treaty, appropriate measures to Spain with a view to abolishing the tax incentives in favour of Spanish companies investing abroad. Spain was (...)

The EU Commission adopts a partially negative decision, with recovery, in respect to incompatible export aid granted to a large firm in Italy (Wam)
Italian representation to the EU (Brussels)
"No export aid to large firms outside the EU"* Introduction On May 19, 2004 the Commission adopted a partially negative decision (not yet published), with recovery, in respect of incompatible aid granted to a large firm, in Italy. The latter was deemed to take advantage of national funding (...)

Procedures

The EU Court of Justice AG Szpunar considers that the General Court erred in law in concluding that the Commission was not competent to examine, in light of the law on State aid, compensation paid by Romania following an arbitral award (Micula)
European Court of Justice (Luxembourg)
According to Advocate General Szpunar, the General Court erred in law in concluding that the Commission was not competent to examine, in the light of the law on State aid, compensation paid by Romania following an arbitral award* Arbitration proceedings initiated on the basis of a bilateral (...)

The UK Government announces the withdrawal of the draft guidance on the Competition Authority’s powers and procedures on the EU foreign direct investment information sharing regime
Morgan Lewis (London)
,
Morgan Lewis (London)
,
Morgan Lewis (London)
The UK government and the Competition and Markets Authority (CMA) have announced the withdrawal of draft guidance on the CMA’s powers and procedures with respect to enforcing an EU regulation for screening foreign direct investment (FDI) into the European Union. The withdrawal follows a European (...)

The EU Commission adopts a formal decision that the UK will not be treated as an EU Member State for FDI regulation purposes
Covington & Burling (London)
The EU Regulation on Foreign Direct Investment (2019/452) (the “EU FDI Regulation”) will enter into force fully on October 11, 2020. Most notably, on this date, a cooperation and information sharing mechanism among Member States and the European Commission in respect of foreign direct investment (...)

The Russian Competition Authority fines a foreign company for failure to submit information within a designated period (Linenhall Overseas)
Russian Federal Antimonopoly Service (Moscow)
FAS imposed a second fine upon a foreign company in two months* At the end of January 2015, the Federal Antimonopoly Service (FAS Russia) fined “Linenhall Overseas Limited” 500,000 RUB for failure to submit information within the designated period. The company is registered in British Virgin (...)

The Chinese NDRC increases antitrust investigations into foreign companies and starts making case decisions public
Sheppard Mullin (Beijing)
Antitrust Investigations in China: Putting Things in Perspective* The current press is buzzing with news about the recent increase in antitrust investigations involving foreign companies with operations in China, and reports of foreign companies being told to expect higher fines if they “put up (...)

The Romanian Competition Authority releases the results of its market inquiry on road construction services which finds that domestic providers scored significantly higher profits than foreign providers
University of Macau - Faculty of Law (Macau)
On 27 August 2013 the Romanian Competition Authority (CC) has published the results of its market inquiry concerning road construction, maintenance and affiliated services. This brief summarizes the major conclusions and recommendations included in the CC’s report. Based on the highway density (...)

Regulatory

The UK Government confirms the commencement date and scope of the National Security and Investment Act
Covington & Burling (London)
,
Covington & Burling (London)
,
Covington & Burling (London)
The UK Government has announced that the National Security & Investment Act (“NSIA”) will come into force on January 4, 2022. The NSIA introduces mandatory notification and pre-clearance requirements for certain qualifying acquisitions of control of companies active in 17 ‘core’ sectors. The (...)

The UK Government announces the date on which the investment-screening regime envisaged by the National Security and Investment Act will come into operation
White & Case (London)
,
White & Case (London)
Having received Royal Assent on 29 April 2021, the Secretary of State for Business Energy and Industrial Strategy ("SoS") has announced that the investment-screening regime envisaged by the National Security and Investment Act 2021 ("NSIA") will become operational from 4 January 2022. The (...)

The UK Government publishes its Subsidy Control Bill following Brexit
Hogan Lovells (London)
,
Hogan Lovells (London)
The UK Government has been busy adding flesh to the bare bones of the domestic subsidy control regime that has been in place since the start of 2021 following the signing of the EU/UK Trade and Cooperation Agreement (TCA). The Subsidy Control Bill introduced before Parliament on 30 June will, (...)

The EU Commission proposes a far-reaching regulation to tackle foreign subsidies
Cleary Gottlieb Steen & Hamilton (Brussels)
,
Cleary Gottlieb Steen & Hamilton (Brussels)
,
Cleary Gottlieb Steen & Hamilton (Brussels)
On May 5, 2021, the European Commission (“EC”) proposed a new draft regulation that, if adopted, would introduce sweeping measures aimed at controlling the impact of foreign subsidies on the EU single market (“Proposed Regulation”). The Proposed Regulation reflects the EU’s policy priority to (...)

The EU Commission proposes a new merger and public procurement control legislation to combat foreign subsidies
Skadden, Arps, Slate, Meagher & Flom (London)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (Hong Kong)
The European Commission (EC) has proposed legislation to curb M&A, public procurement and market conduct by foreign-subsidized companies that may distort the European Union’s internal market. New requirements include: Mandatory notification of acquisitions where the target’s EU turnover (...)

The UK Parliament approves the National Security and Investment Act
Covington & Burling (London)
,
Covington & Burling (London)
,
Covington & Burling (London)
On 29 April, the UK Parliament adopted the National Security & Investment Law (“NS&I Law”). The law received Royal Assent the following day and will come into legal effect in late 2021. The NS&I Law will introduce mandatory notification and pre-clearance requirements for transactions (...)

The UK Parliament’s Act on foreign direct investment receives Royal Assent
Morgan Lewis (London)
,
Morgan Lewis (London)
,
Morgan Lewis (London)
The UK National Security and Investment Act 2021 (NSI Act) received royal assent on 29 April 2021. Expected to come into force in late 2021, the NSI Act will introduce a standalone UK foreign direct investment and national security screening regime, replacing the current regime that links (...)

The UK Parliament receives Royal Assent for the National Security and Investment Act
Ashurst (London)
,
Ashurst (London)
,
Ashurst (London)
Introduction A new national security new regime On 29 April 2021, the UK National Security and Investment Act ("Act") received Royal Assent. When brought into force, which is not expected until late 2021, the Act will significantly strengthen the UK Government’s powers to investigate and (...)

The German Government introduces a significant amendment of foreign direct investment rules
Herbert Smith Freehills (Dusseldorf)
,
Herbert Smith Freehills (Dusseldorf)
Germany is continuing to tighten and develop its FDI regime: After various legislative actions in the course of 2020, the German Federal Government agreed on significant amendments of the existing FDI rules which will enter into force with its publication in the Federal Gazette (...)

The German Government passes a revised regulation on foreign investment control
Hogan Lovells (Brussels)
,
Hogan Lovells (Brussels)
Regulators are becoming increasingly active in imposing measures on deals or prohibiting them altogether under FDI rules – with prohibitions happening in the EU’s largest economies Germany, France, and Italy in the past months. Against this backdrop, Germany is moving forward on its plans for (...)

The UK Government publishes a consultation response which clarifies the national security regime
Freshfields Bruckhaus Deringer (London)
,
Freshfields Bruckhaus Deringer (London)
,
Freshfields Bruckhaus Deringer (Brussels)
Since the UK Government published the National Security and Investment Bill (the Bill) in November 2020 (see our earlier briefing), a number of issues have prompted significant debate and investor concerns. Many of these centre on the delicate balance between the UK Government’s desire to (...)

The UK Government clarifies the scope of the new national security and investment bill
White & Case (London)
,
White & Case (London)
In November 2020, the UK published a draft of its new National Security and Investment Bill ("NSIB"), heralding the introduction of a new regime for reviewing investments on national security grounds. The Bill introduced a mandatory pre-screening mechanism for certain deals involving (...)

The German Government introduces a draft bill on foreign direct investment
Hogan Lovells (Brussels)
,
Hogan Lovells (Brussels)
Foreign investment control has become a key factor in M&A deals and 2020 was a particularly eventful year. A large number of countries have recently introduced foreign investment control regimes (or tightened their existing rules) and made use of them with, for example, prohibitions (...)

The Spanish Government approves the reform of the legal regime that establishes a screening regime for certain foreign direct investments
Hogan Lovells (Madrid)
,
Hogan Lovells (Madrid)
,
Hogan Lovells (Madrid)
The Spanish government last week approved a new reform of the legal regime that establishes a screening regime for certain foreign direct investments ("FDI") in Spain, (the "Reform"), through the enactment of Royal Decree-Law 34/2020, of 17 November, on urgent measures to support business (...)

The Spanish Government amends the FDI screening regime and temporarily extends the regime to investments made by EU/EEA investors above given thresholds
Callol, Coca & Asociados (Madrid)
,
Callol, Coca & Asociados (Madrid)
,
Callol, Coca & Asociados (Madrid)
Royal Decree-Law 34/2020, of 17 November, on urgent measures supporting business solvency and others (RDL 34/2020), has been published today introducing (i) a new amendment to the foreign direct investment (FDI) screening regime applicable to critical infrastructures, supplies, technologies and (...)

The Spanish Government enacts a foreign direct investments mechanism
Ashurst (Madrid)
,
Ashurst (Madrid)
In March 2020, the Spanish Government introduced a screening mechanism for certain foreign direct investments in Spain (the "Spanish FDI Regime"), which requires prior administrative authorisation from the Council of Ministers of investments made by non-EU/EFTA investors in Spanish companies (...)

The Dutch Government implements the EU regulation establishing a framework for the screening of foreign direct investments
European Court of Justice (Luxembourg)
On 17 November 2020, the Dutch Senate passed a law (the “Implementing Law”) implementing Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (the “FDI Regulation”). The (...)

The Spanish Government introduces a foreign direct investment screening regime
Callol, Coca & Asociados (Madrid)
In the framework of a larger urgent legislative package to ease the effects of the Covid-19 crisis in the economy in the spring of 2020, the Spanish Government put in place a new foreign direct investment (FDI) screening system applicable to non-EU/non-EFTA companies. This screening system (...)

The UK Government publishes proposals designed to restrict foreign investment
Bird & Bird (London)
,
Bird & Bird (London)
,
Bird & Bird (London)
Last week, the UK Government published new proposals designed to restrict foreign investment in the UK and to potentially block securities listings on UK public markets, in each case on grounds of national security. Foreign investment controls On 11 November 2020, the National Security and (...)

The UK Government proposes screening powers for certain deals on national security grounds
Baker Botts (Brussels)
,
Baker Botts (Brussels)
,
Baker Botts (London)
This week, the UK Government announced new draft powers under the National Security and Investment Bill (the ‘Bill’) to screen certain deals on national security grounds. The proposals apply to takeovers and investments (including minority share acquisitions) by foreign buyers in a wide range of (...)

The German Government further aligns its foreign direct investment screening regime with the EU regulation
Morgan Lewis (Frankfurt)
,
Morgan Lewis (Frankfurt)
The 16th Amendment to the German Foreign Trade and Payments Ordinance entered into effect on October 28, 2020, the third step in the German government’s efforts to tighten its foreign direct investment review regime in 2020. Earlier this year, Germany took action in aggravating its foreign (...)

The EU Parliament and Council put in force a regulation for the screening of foreign direct investments
Van Bael & Bellis (Brussels)
On 11 October 2020, the EU FDI Screening Regulation entered into force. Adopted in March 2019, it covers EU Member States’ procedures to assess, investigate, authorise, condition, prohibit or unwind foreign direct investment ( FDI ). FDI screening protects national security interests by (...)

The EU Parliament and Council pass a regulation for the screening of foreign direct investments into the EU
Ashurst (London)
,
Ashurst (London)
,
Ashurst (Brussels)
On 11 October 2020, Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union (the "FDI Regulation") became fully applicable. In the 18 months since the FDI Regulation was enacted, the Regulation and the European Commission’s ("Commission") (...)

The EU Parliament and Council release a regulation on foreign direct investment screening regime
White & Case (Frankfurt)
,
White & Case (Dusseldorf)
,
White & Case (Brussels)
While there is still no standalone foreign direct investment (FDI) screening at the EU level, the EU continues to push for a coordinated approach toward foreign direct investments into the EU. The key instrument is the EU Screening Regulation, which has entered into force on October 11, 2020. (...)

The EU Parliament and Council see their framework for the screening of foreign direct investments enter into force
Covington & Burling (Brussels)
,
Covington & Burling (Frankfurt)
,
Covington & Burling (London)
On October 11, 2020, the EU FDI Screening Regulation (EU) 2019/452 – the “Regulation”) entered fully into force. The Regulation, which was approved and adopted in March 2019, establishes a framework for the screening of foreign direct investments (“FDI”) by EU Member States in which decision-making (...)

The Romanian Competition Authority announces public consultation on the amendments of the FDI screening regime
University of Macau - Faculty of Law (Macau)
National competition authorities and FDI screening: the case of Romania* EU FDI Screening Regulation: separating security from competition The Regulation 2019/452 establishing a framework for the screening of foreign direct investments into the Union (EU FDI Screening Regulation) was adopted (...)

The UK Competition Authority drafts guidance on its powers and procedures regarding foreign direct investments
Dechert (Brussels)
,
Dechert (Brussels)
,
Dechert (Brussels)
Key takeaways FDI rules in the UK have recently been tightened in the context of the COVID-19 pandemic. The UK can now intervene in transactions on the grounds of public health emergencies. Also, lower jurisdictional thresholds apply to transactions relating to artificial intelligence, (...)

The UK Competition Authority consults on draft guidance concerning its powers and procedures in the relation to the post-Brexit foreign direct investments information request process
Morgan Lewis (London)
,
Morgan Lewis (London)
,
Morgan Lewis (London)
As noted in our recent LawFlashes, New Powers for UK Government in Transactions Impacting Public Health Emergencies and National Security and Potential UK Reforms Could Increase Screening of Certain Foreign Takeovers, governments are increasing their scrutiny of certain foreign direct (...)

The Chinese MOFCOM adopts rules on handling complaints of foreign-invested enterprises
Ministry of Commerce of the People’s Republic of China
The Ministry of Commerce revised and adopted the Rules on Handling Complaints of Foreign-Invested Enterprises* Recently, the Ministry of Commerce revised and adopted the Rules on Handling Complaints of Foreign-Invested Enterprises (hereinafter referred to as the Rules), which shall come into (...)

The Chinese State Council advances the opening of the financial sector to enhance foreign investments
Chinese State Council (Beijing)
China to advance orderly opening-up of financial sector: official* BEIJING — China will resolutely push forward the opening-up of the financial sector in an orderly manner as it is a rational choice in line with the needs of development, an official with the central bank said on Aug 25. The (...)

The Romanian Government launches a draft law on the authorization of 5G technology manufacturers with the potential exclusion of certain foreign businesses based on national security grounds resulting in decreased competition in an already oligopolistic market
Maravela, Popescu & Asociatii (Bucharest)
1. Background The Ministry of Transportation, Infrastructure and Communications launched on August 4, 2020 a draft law on measures relating to information and communication infrastructures of national interest and the conditions for the implementation of 5G networks (the “Draft Law”). The Draft (...)

The French Government issues interim rules on certain foreign investments in response to COVID-19 Free
Skadden, Arps, Slate, Meagher & Flom (Paris)
,
Skadden, Arps, Slate, Meagher & Flom (Paris)
On July 23, 2020, the French government issued decree nº 2020-892 of July 22, 2020 (the Decree), and a ministerial order of the same date (together, the Interim Rules), which lowered the applicable threshold that triggers French foreign investment control for investments by non-European (...)

The French Government temporarily reduces the threshold for review of non-EU/EEA investments in French listed companies in the context of the COVID-19 pandemic Free
Cleary Gottlieb Steen & Hamilton (Brussels)
,
Cleary Gottlieb Steen & Hamilton (Paris)
,
Cleary Gottlieb Steen & Hamilton (Paris)
On July 23, 2020, the French Government published a Decree and a Ministerial Order to temporarily reduce the threshold for review of nonEU/EEA investments in French listed companies in the context of the COVID-19 pandemic. As explained by the French Minister for the Economy, “[w]hile most (...)

The German Government further tightens its national foreign direct investment screening regime and introduces sanction mechanisms for non-compliance
Morgan Lewis (Frankfurt)
,
Morgan Lewis (Frankfurt)
The updated German Foreign Trade and Payments Act enters into effect on July 17 and is the second of three major steps planned for 2020 to reform Germany’s foreign direct investment regime. The updated German Foreign Trade and Payments Act (Außenwirtschaftsgesetz (AWG)) includes the necessary (...)

The Polish Government amends the national foreign investments control scheme and obliges investors from outside the EEA or from non-OECD countries to notify their transaction
Hansberry Tomkiel (Warsaw)
LEAD: Pursuant to the recently amended Polish rules on the control of investments, the Polish Competition Authority (UOKiK) is empowered to review intended investments in Polish companies by investors who are: i) from outside of the European Economic Area, or ii) from non-OECD countries. Such (...)

The Polish Government adopts legislation under which transactions involving Polish companies and non-EEA investors would be subject to a new clearance obligation
Bird & Bird (Warsaw)
,
Bird & Bird (Warsaw)
Due to the COVID-19 pandemic and the looming economic crisis, Poland is currently adopting legislation, under which transactions involving certain Polish companies and non-EEA investors would be subject to a new clearance obligation. This legislation also temporarily adopts the FDI Screening (...)

The EU Commission proposes new powers of investigation, sanction, control on mergers, market conduct, and public contracts to combat foreign subsidies
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
The European Commission (EC) has proposed far-reaching new powers to investigate and sanction foreign subsidies that have allegedly distortive effects on the European Union’s (EU) internal market. The proposals include: (i) mandatory notification of acquisitions, including potentially minority (...)

The EU Commission adopts a White Paper with proposals for sweeping enforcement powers to address potential distortive effects of foreign subsidies in the EU
Dechert (Brussels)
,
Dechert (Brussels)
,
Dechert (Brussels)
Background On 17 June 2020, the European Commission (Commission) adopted a White Paper which contains far-reaching proposals for new enforcement powers against companies benefitting from subsidies granted by non-EU countries. While there are already well-developed systems of anti-trust/merger (...)

The German Government tightens foreign direct investment control in light of COVID-19 following the guidance from the EU Commission on a possible increased risk of attempts to acquire healthcare capacities Free
Jones Day (Brussels)
,
Jones Day (Frankfurt)
,
DLA Piper (London)
On May 20, 2020, the German Federal government adopted the 15th amendment to the Foreign Trade and Payments Ordinance (AWV). The changes to the AWV will be effective shortly, after publication in the Federal Gazette. Prompted by the COVID-19 pandemic, the amendment expands the scope of (...)

The German Government tightens the national foreign direct investment screening regime to better protect security-relevant businesses in the health sector from non-EEA take-overs in light of the COVID-19 outbreak Free
Morgan Lewis (Washington)
,
Morgan Lewis (Frankfurt)
,
Morgan Lewis (Frankfurt)
A recent amendment to Germany’s foreign direct investment ordinance adds new businesses to the existing catalogue of critical infrastructures—in particular, in the health sector—that will be subject to foreign direct investment screening going forward. Germany is taking several legislative (...)

The OECD reports on foreign direct investment flow regulation in EU Member States during the COVID-19 pandemic Free
Addleshaw Goddard (London)
,
Addleshaw Goddard (London)
,
Addleshaw Goddard (London)
UK FDI Hub: COVID-19 and foreign direct investment regulation* Introduction The OECD reports that even if economies begin recovering in the second half of the year, foreign direct investment (FDI) flows are expected to fall more than 30% in 2020 from 2019 levels, as a result of the policy (...)

The EU Commission issues guidance on the screening of foreign direct investments in the context of the COVID-19 pandemic Free
Cleary Gottlieb Steen & Hamilton (London)
,
Cleary Gottlieb Steen & Hamilton (Paris)
,
Cleary Gottlieb Steen & Hamilton (London)
In a March 25, 2020 communication, the European Commission (“EC”) issued guidance on the screening of foreign direct investments (“FDI”) in the context of the COVID-19 pandemic. The communication identifies an increased risk of attempts by non-EU acquirers to obtain control over suppliers of (...)

The EU Commission issues guidance to Member States concerning foreign direct investment during the COVID-19 outbreak Free
Hogan Lovells (London)
,
Hogan Lovells (Brussels)
,
Hogan Lovells (London)
The disruption linked to COVID-19 already affects the global economy significantly, including M&A transactions in Europe and across the globe. On the regulatory side, many deals face challenges caused by national authorities’ reduced capacities, while some authorities struggle to uphold (...)

The Spanish Government updates the foreign investment screening regime in light of COVID-19 and prohibits or severely limits the foreign acquisition of companies active in sectors related to public order, public security, or public health Free
Callol, Coca & Asociados (Madrid)
The rapid spread of Covid-19 has led to its consideration as a global pandemic. Spain, currently at the epicenter of the crisis, has declared the state of alarm last Sunday. To ease the effects of the Covid-19 crisis in the economy, the Spanish Government approved yesterday Royal Decree-Law (...)

The EU Commission publishes a package of initiatives on Europe’s digital future to create legislation on AI and big data
Norton Rose Fulbright (Brussels)
The New EU AI and Data Strategy and what it Means for EU Antitrust Reform* On February 19, the European Commission (EC) published a package of initiatives (the AI and Data Package) on Europe’s “digital future,” delivering on the promise in President von der Leyen’s political guidelines to put (...)

The Spanish Government follows up on the EU’s regulation on the coordination of foreign investment with a draft regulation
Callol, Coca & Asociados (Madrid)
1. EU Regulation 2019/452 on a framework for the screening of foreign direct investments. Earlier this year, the EU adopted Regulation (EU) 2019/452 of 19 March (Regulation), establishing a framework for the screening of foreign direct investments (FDI) into the EU. The Regulation, dealing (...)

The Chinese Cyberspace Administration issues new measures for security assessment for cross-border transfer of personal information
King & Wood Mallesons (Beijing)
,
King & Wood Mallesons (Beijing)
,
King & Wood Mallesons (Beijing)
This article has been nominated for the 2020 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. I. Background Early on the morning of June 13, 2019, Cyberspace Administration of China (“CAC”) issued the Measures for Security Assessment for Cross-border (...)

The Japanese Government amends orders listing industries requiring prior foreign investment screening
DIC Corporation (Tokyo)
,
Freshfields Bruckhaus Deringer (Tokyo)
On 27 May 2019, the Japanese government gazetted amendments to ministerial orders listing industries requiring prior foreign investment screening under the Foreign Exchange and Foreign Trade Law (FEFTL) to include IT and telecommunications technology manufacturing, software development, and (...)

The EU Parliament and Council pass a foreign direct investment regime establishing a framework for the screening of FDI into the Union
Sullivan & Cromwell (London)
,
Sullivan & Cromwell (Brussels)
This article has been nominated for the 2020 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. Summary On 10 April 2019, Regulation (EU) 2019/452 (the “Regulation”) entered into force, establishing a European Union framework for the screening of foreign (...)

The EU Parliament establishes a bloc-wide framework for the screening by the Member States of foreign direct investment into the EU
Morgan Lewis (Brussels)
,
Morgan Lewis (Brussels)
,
Morgan Lewis (Washington)
The European Parliament adopted a new regulation on March 19 establishing a bloc-wide framework for the screening by EU member states of foreign direct investment (FDI) into the European Union (the FDI Regulation). The FDI Regulation seeks to ensure a consistent framework throughout the (...)

The Chinese National People’s Congress adopts a foreign investment law
White & Case (Beijing)
On March 15, 2019, the National People’s Congress of China adopted the new Foreign Investment Law (“FIL”), with a view toward unifying and streamlining the foreign investment framework in China. The FIL will come into effect on January 1, 2020. The FIL creates a general framework that will place (...)

The Chinese National People’s Congress adopts a foreign investment law providing stronger protection and a better business environment for foreign investors
AnJie Law (Beijing)
On March 15, 2019, China’s national legislature, the National People’s Congress passed the Foreign Investment Law (the “Law”), a landmark legislation that will provide stronger protection and a better business environment for foreign investors. The Law will take effective on January 1, 2020. Upon (...)

The French and German governments publish a joint manifesto calling for a new European industrial policy with changes to merger control and State aid rules
Court of First Instance of Namur (Namur)
On 19 February 2019, the French Minister of Economy, Mr Bruno Le Marie, and the German Minister of Economy, Mr Peter Altmaier, published a joint manifesto which calls for the development of a European industrial policy to ensure the global competitiveness of European manufacturing industries. (...)

The German Government tightens further its rules on foreign investments in national business by non-EU and non-EFTA investors
Freshfields Bruckhaus Deringer (Dusseldorf)
,
Freshfields Bruckhaus Deringer (Berlin)
On 19 December, the German Government tightened further its rules on foreign investments in German businesses by non-EU/non-EFTA investors. No parliamentary approval was needed and the reforms entered into force on 29 December 2018. The reform lowers significantly the threshold at which the (...)

The EU Parliament, the Council, and the Commission agree on a framework for the screening of foreign direct investments on the grounds of security or public order
Norton Rose Fulbright (Brussels)
,
McDermott Will & Emery (Paris)
,
McDermott Will & Emery (Brussels)
EUROPEAN PARLIAMENT, COUNCIL AND EC PROPOSE EU FRAMEWORK FOR FOREIGN DIRECT INVESTMENT SCREENING On 20 November 2018, the European Parliament, the Council and the EC agreed on a framework for the screening of foreign direct investment (FDI) on grounds of security or public order. This new (...)

The EU Commission and Council discuss enhancements of national security screening of foreign direct investment
Cohen & Gresser (United Kingdom)
,
Dechert (Washington)
,
Dechert (Brussels)
The EU has agreed in principle on a strengthened framework to ensure that foreign investment does not threaten security and public order, while keeping the EU open to foreign investment. The draft FDI Regulation does not go as far as introducing an EU screening mechanism whose decisions are (...)

The Chinese MOFCOM publishes the draft of its new measures which aims to loosen terms regulating foreign strategic investment into Chinese listed companies, further open up the stock market and encourage strategic investments by foreign investors
Freshfields Bruckhaus Deringer (Hong Kong)
,
Freshfields Bruckhaus Deringer (Beijing)
,
Freshfields Bruckhaus Deringer (Beijing)
On 30 July 2018, China’s Ministry of Commerce ("MOFCOM"), together with five other ministries, published the draft of the amended Administrative Measures of Foreign Investors Making Strategic Investment into Chinese Listed Companies ("Draft New Measures") and invited comments to be submitted by (...)

The UK Government introduces draft legislation that will allow it to intervene in a wider range of investments in the military, dual-use, computing hardware, and quantum technology sectors
Freshfields Bruckhaus Deringer (London)
In the same week as President Trump blocked Broadcom’s takeover of Qualcomm on national security grounds, the UK Government introduced draft legislation that will allow it to intervene in a wider range of investments in the military, dual-use, computing hardware and quantum technology sectors. (...)

The Chinese Government confirms plans to merge China’s three antitrust authorities into a single agency under a new government body called the State Administration for Market Supervision
Freshfields Bruckhaus Deringer (Singapore)
,
Freshfields Bruckhaus Deringer (Hong Kong)
,
Freshfields Bruckhaus Deringer (Hong Kong)
China’s National People’s Congress (NPC) confirmed plans last week to merge China’s three antitrust authorities into a single agency under a new government body called the State Administration for Market Supervision. At the same time, the NPC also confirmed plans to merge China’s banking and (...)

The EU Commission unveils a set of proposals for the screening of foreign direct investments into the EU
Herbert Smith Freehills (London)
,
Herbert Smith Freehills (Brussels)
,
Herbert Smith Freehills (London)
On 13 September 2017 the EU Commission unveiled a set of proposals for the screening of foreign direct investments into the EU. Whereas the Commission recognises the benefits of foreign direct investment and its importance for growth, jobs and innovation in the EU, it also wants to be in a (...)

The EU Commission proposes a new regulation that would allow the Commission and the Member States to adopt rules for screening foreign direct investment
Van Bael & Bellis (Brussels)
On 14 September 2017, the European Commission proposed a new regulation to allow the Commission and the Member States to adopt rules for screening foreign direct investment (“FDI”) in the EU that raises concerns on grounds of security or public order (the “Proposal”). The Proposal aims to (...)

The EU and Canada sign the Comprehensive Economic and Trade Agreement (CETA) setting out provisions relating to competition policy
Davies Ward Phillips & Vineberg (Toronto)
,
Clifford Chance (London)
This article has been nominated for the 2018 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. What does CETA mean for EU and Canadian competition policy?* Introduction With the Comprehensive Economic and Trade Agreement (CETA) having finally been signed (...)

The US Committee on Foreign Investment publishes its annual report and reviews several national security aspects of the increasing number of acquisitions by Asian companies
Freshfields Bruckhaus Deringer (Washington)
,
Freshfields Bruckhaus Deringer (Washington)
Parties to transactions that might implicate US national security interests may elect voluntarily to submit a notification to the Committee on Foreign Investment in the United States (CFIUS), the multi-agency committee charged with conducting national security reviews of acquisitions by foreign (...)

The Mexican Competition Authority issues an English version of the Federal Economic Competition Law
Mexican Competition Authority (Mexico City)
COFECE publishes an english version of the federal economic competition law* Mexico City, August 20th 2015. – Mexico’s Federal Economic Competition Commission has released an English version of the Federal Economic Competition Law (Law). This document is a courtesy translation of the Law (...)

The Chinese Insurance Regulatory Commission partially relaxes mergers with new acquisition rules in the insurance sector expected to help facilitate market entry by expanding the footprint of private capital
AnJie Law (Beijing)
China Issues New Insurance Merger Rules* Level play ground, optimizing industry structure, promoting competitiveness, and enriching the risk management tool kit of the insurance institutes”, quoting a statement of CIRC posted on its website. Promotion of Competition CIRC’s partially relaxed (...)

The Mexican Parliament adopts sweeping telecom reforms aiming at cracking down dominant operators and induces significant reforms on competition law and agency
Creel García-Cuéllar Aiza y Enríquez SC (Mexico)
,
Amurabi (Paris)
On June 11th, 2013, a significant amendment to the Mexican Constitution known as “the new Telecommunications Act”, which also significantly impacts the competition regime, was enacted, and will enter into force on June, 12th. The amendment is seen as resulting from the "Pact for Mexico", entered (...)

The Chinese MOFCOM, NDRC, and SAIC issue a joint enforcement draft opinion on the policy statements regarding Chinese foreign investment
Sheppard Mullin (Beijing)
Is China Giving Carte Blanche for Anti-Competitive Conduct by PRC Companies Doing Business Overseas?* PRC companies should be careful not to interpret as carte blanche for anti-competitive behavior a recent policy statement by the Chinese government encouraging PRC companies to coordinate (...)

The OECD holds a roundtable on competition and commodity price volatility
OECD - Competition Division (Paris)
Executive summary, by the Secretariat Considering the background papers, discussion by delegates and expert panellists at the Global Forum and countries’ written submissions, several key points emerge: (1) Primary commodity prices are inherently volatile and the current and recent episode is (...)

The Chinese MOFCOM and the National Development and Reform Commission release a document regulating foreign investments
Covington & Burling (Shanghai)
,
Covington & Burling (Beijing)
On December 24, 2011, China’s Ministry of Commerce and National Development and Reform Commission released the Catalogue for Guiding Foreign Investment (2011 Revision) (“Catalogue”), the nation’s principal document for regulating foreign investment into China. As expected, the final Catalogue (...)

The Chinese MOFCOM publishes the final rules on the national security review of foreign investment in national companies
Jones Day (Shanghai)
,
Gibson Dunn (Hong Kong)
,
Jones Day (Beijing)
China has published new rules to implement the national security review that will be conducted as part of the review of mergers and acquisitions by foreign investors and involving Chinese companies. These rules provide for review and potential rejection of acquisitions of Chinese companies by (...)

The Russian Parliament issues a federal law on foreign investments in companies having strategic importance for state security and defense
Donner & Partner (Waiblingen)
The new Federal Law of the Russian Federation on Foreign Investments in Companies Having Strategic Importance for State Security and Defence, n° 57 - FZ (new law), signed by then - president Vladimir Putin on April 29, is effective from 7 May 2008 in Russia. In brief, the law will require (...)

The Chinese National People’s Congress adopts an anti-monopoly law implementing wide-ranging reforms across Chinese antitrust and merger controls
Jones Day (Shanghai)
,
Jones Day (Beijing)
,
Winston & Strawn (Washington)
China’s National People’s Congress (« NPC ») finally adopted a new Anti-Monopoly Law (« AML ») in August after more than 10 years of drafting. The law will take effect on August 1, 2008. I. Overview The new AML is a tremendous leap forward for China, bringing it squarely into the modern world of (...)

The EU Commission and the Chinese Government sign an agreement on a structured dialogue on competition to foster the interests of both European and Chinese companies when doing business in each other’s territory
Gibson Dunn (Brussels)
"EU-China dialogue on Competition formalised with the signature of Terms of Reference on May 6 2004"* The European Commission and the Chinese Government signed on May 6 an agreement on a structured dialogue on Competition. This is the first such competition dialogue embarked on by China and it (...)

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues