Lamy Review of Competition, theThe FSR Regulation put to the test implementation implementation : welcome clarifications and remain

Regulation (EU) 2022/2560 on foreign subsidies inaugurates a new control mechanism designed to prevent distortions of competition within the internal market. Its first months of application are already yielding valuable lessons.

While the recent guidelines adopted by the European Commission provide much-needed clarification, uncertainties remain as to the scope and practical details of the scheme. The adoption of Regulation (EU) 2022/2560 of December 14, 2022 on foreign subsidies distorting the internal market (hereinafter referred to as the “FSR Regulation” or the “Regulation”) and its entry into force on July 12, 2023 marked a major step forward in the European arsenal of economic regulation. For the first time, the European Union (“EU”) has created a horizontal instrument for monitoring the effects of financial support granted by third countries to companies operating on the internal market, where such support is likely to distort competition.