Review finds Foreign Subsidies Regulation fit for purpose, Commission considers targeted changes

European Commission — DG Competition · 2026-07-14 · EU · verified record

Themes: Cross-sector · Mergers & acquisitions · Public procurement

Ecosystems: EU Foreign Subsidies Regulation

The European Commission's first review of the Foreign Subsidies Regulation (FSR) has found that the regulation is fit for purpose to address distortions in the internal market caused by foreign subsidies. Its objective of maintaining a level playing field in the internal market is widely acknowledged and remains relevant. The review of the first three years of FSR enforcement shows the instrument is working well in practice. The procedures for reviewing concentrations and foreign financial contributions in public procurement procedures are important components of the FSR framework, enabling the Commission to identify and address potentially distortive foreign subsidies before a merger is concluded or a high-value public contract is awarded. The Commission's 'ex officio' powers provide an effective complementary framework to investigate and address potential distortive foreign subsidies in the internal market. At the same time, the review shows certain concerns about complexity and administrative burden, so the Commission is looking into ways to simplify where possible. Stakeholders confirm FSR's relevance while calling for simplification Feedback from most stakeholders through targeted consultations underlines that the FSR framework is overall fit for purpose. In concentration cases, replies to consultations and early enforcement practice highlight the value of prenotification engagements, which improve clarity and efficiency in the notification process. Stakeholders have also welcomed the available exceptions to reporting obligations and the possibility of requesting waivers for certain information requirements. In public procurement cases, the Commission successfully reviewed over 5,000 submissions, ensuring public authorities could secure essential goods and services without delays. While formal prenotifications remained low, the Commission proactively managed numerous requests from companies and public authorities to guarantee smooth and efficient procedures. In ex officio cases, the recent opening of in-depth investigations in two cases, one concerning threat detection systems and the other in the wind sector , offers further insight into the Commission's approach when assessing potentially distortive foreign subsidies.…