The EU Commission issues its proposal to create wide-ranging powers to tackle non-EU subsidies which may distort competition in the Single Market

On May 5 the European Commission issued its proposal to create wide-ranging powers to tackle non-European subsidies which may distort competition in Europe. The proposal introduces three different regimes: An ex officio investigation up to 10 years after the subsidy was received. A mandatory notification regime for M&A if one of the parties is established in the EU. A mandatory notification for companies bidding in certain public procurement procedures. The proposal will now go into the legislative process which will no doubt spur significant debate since it reflects a growing protectionist sentiment in the EU—but may at the same time be seen as a threat to incoming foreign investment. Key takeaways The proposed Regulation on foreign subsidies distorting the internal market will

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Alec J. Burnside, Marjolein De Backer, The EU Commission issues its proposal to create wide-ranging powers to tackle non-EU subsidies which may distort competition in the Single Market, 5 mai 2021, e-Competitions May 2021, Art. N° 100919

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