The EU’s new regime for tackling foreign subsidies will kick in on 12 July 2023.

On 10 July 2023, the European Commission (Commission) published the final text of the Implementing Regulation (Final IR) on proceedings pursuant to the Foreign Subsidies Regulation (FSR). The Final IR is the last legal instrument to be adopted before the FSR takes effect on 12 July 2023. The FSR empowers the Commission to investigate and remedy subsidies received from non-EU States that distort competition in the EU internal market. For companies, the FSR adds a further layer of regulatory scrutiny on top of existing merger control and foreign direct investment rules.