An important development in international legislation comes in the form of the recent publication by the European Commission of the final Implementing Regulation on proceedings pursuant to the Foreign Subsidies Regulation (FSR). The development occurred on July 10, 2023, and revealed how the new European Union (EU) rules will address distortions caused by foreign subsidies in the EU internal market.
The European Commission’s final regulation on the implementation of the Foreign Subsidies Regulation (FSR) outlines the practical and procedural aspects of these new rules. The much-anticipated Implementing Regulation (the “IR”) is set to bring with it changes to existing legal landscape.
More specifically, the IR clarifies previously ambiguities regarding the application of the EU’s new rules. Legal experts and corporate entities alike have anxiously awaited these clarifications, as they have far-reaching implications for how corporations conduct business in the EU’s internal market.
Corporations frequently rely on foreign subsidies to increase their competitiveness in various markets, which can lead to distortion of the market. The new regulations will confront this distortion head-on and could compel corporations to adjust their business strategies accordingly.
Since it is of utmost importance for international corporations to understand the implications of these new regulations, further information on this matter should be directly sought from the original report from McDermott Will & Emery, a renowned global law firm.
These next few months will be critical to observe as corporations digest and react to these new regulations. Legal professionals worldwide should stay abreast of developments, as these will likely inform the climate of international business and law for the foreseeable future.