The EU Commission proposes a new merger and public procurement control legislation to combat foreign subsidies

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. [1] New requirements include: Mandatory notification of acquisitions where the target’s EU turnover exceeds €500 million and the parties benefited from over €50 million in foreign subsidies in the previous three years. These acquisitions are subject to a mandatory waiting period of 25 working days for a Phase 1 inquiry and a possible additional 90 working days for a Phase 2 inquiry; Mandatory notification for foreign-subsidized entities participating in public tenders with a contract value greater than €250 million; and A right for the EC to investigate market conduct, including M&A below