On June 30, 2022, the European Parliament (EP) and the Council announced that they had reached a provisional political agreement on the EU Foreign Subsidies Regulation (FSR).
The European Commission (Commission) published an extensive white paper in 2020 stating that foreign subsidies in recent years may have distorted the EU internal market. Foreign subsidies to which the FSR applies include any financial contribution granted by a non-EU government, governmental authorities or public or private entities closely linked to a non-EU country and that confer an advantage to the recipient. A distortion on the internal markets shall be deemed to exist where a foreign subsidy is liable to improve the competitive position of the undertaking concerned in the internal market and where it actually or potentially negatively affects competition on the internal market.