The European Commission has published a far-reaching proposal for a regulation to tackle foreign subsidies affecting the EU internal market. This proposal appears as a game changer for foreign direct investment. If adopted, it will seriously increase the regulatory risk for any company established, operating or investing in the EU with support from non-EU States. But the proposal’s effects go far beyond foreign-subsidized transactions. They apply to any type of business activity which may be affected by foreign subsidies, including public procurement tenders. Thus, this alert summarizes its main implications from a business standpoint and the potential legal challenges ahead.
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