On 30 June 2022, the EU co-legislators (the European Parliament and the Council) reached an agreement on a regulation to control foreign subsidies that distort the EU internal market (Foreign Subsidies Regulation or FSR).

The FSR, which is expected to enter into force by mid-2023, will have a major impact on M&A and public procurement in the EU and could affect the business activities in the EU of any company that has received subsidies from a non-EU country.