The German Government further tightens its national foreign direct investment screening regime and introduces sanction mechanisms for non-compliance

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 changes for alignment with the EU FDI Screening Regulation, which sets the stage for a more coherent foreign direct investment (FDI) regime across the European Union. Further, and of high practical relevance, the updated AWG extends the notification obligations for foreign investors investing in companies domiciled in Germany and introduces sanction mechanisms in case of noncompliance. Earlier this year, Germany already strengthened its FDI rules in the attempt to more effectively protect German

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Michael Masling, Christian Leeder, The German Government further tightens its national foreign direct investment screening regime and introduces sanction mechanisms for non-compliance, 17 juillet 2020, e-Competitions July 2020, Art. N° 95842

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