As the European Union increases its regulatory focus on foreign subsidies, businesses face a complex and evolving compliance landscape.
This GT Alert specifically addresses the EU’s investigative actions under two key frameworks: the Basic Anti-Subsidy Regulation (Regulation (EU) 2016/1037) and the Foreign Subsidies Regulation (FSR)(Regulation (EU) 2022/2560) and highlights notable cases, such as the investigation into Chinese-built battery electric vehicles (BEVs) under the Basic Anti-Subsidy Regulation, which led to definitive countervailing duties, as well as inquiries into Chinese wind turbine suppliers and security technology company Nuctech under the FSR.
The alert does not explore broader regulatory measures but instead focuses on the investigative processes and general strategies businesses can consider to prepare for potential EU investigations. Whether operating in the EU or entering the market, businesses should understand the differences and common themes in these cases should an investigation occur.