The European Commission’s Directorate-General for Competition (DG COMP) has published a policy brief that provides comments on the Foreign Subsidies Regulation (FSR) requirements and first cases the Directorate has addressed in the 100 days since the reporting regime began.
The brief provides statistics on the 53 notifications received in that period, as well as clarifications on some recurring issues that have arisen in the context of notifications, such as how to properly categorise relevant advantages provided by non-EU countries, i.e., Foreign Financial Contributions (FFCs), how to report those identified as most likely to distort the internal market, and how to interpret some of the exceptions to the obligation to report certain FFCs.
Action to consider
Multinationals are encouraged to perform an in-depth strategic review and develop a compliance roadmap promptly. The FSR gives the European Commission (Commission) far-reaching powers to potentially delay or block M&A transactions and public procurement bids or impose significant redressive measures. In addition, the FSR gives the Commission wide ex-officio investigative powers in all other situations and the same ability to impose redressive measures.
Read more in our PwC Tax Policy Alert.