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Detailed procedures for addressing distortive foreign subsidies

Competition

On 30 June 2022, the Council and the European Parliament provisionally agreed on an instrument to address distortive foreign subsidies in the internal market. The purpose of the proposed initiative is to set out the detailed procedural rules concerning the application of the regulation, such as the procedures for the notification of concentrations and public procurement bids as well as the calculation of time-limits, and the general rules on preliminary reviews and in-depth investigations.

Links

Public consultation

ID: 13602

Lobbying Activity

32 responses

BUSINESSEUROPE urges simpler foreign subsidies rules to reduce administrative burden

BUSINESSEUROPE, 6 Mar 2023

The organization requests exemptions for standard business transactions and lower-value financial contributions from notification requirements. They argue the current rules create excessive administrative burden and will overwhelm the Commission with irrelevant information about millions of minor transactions.
This would reduce compliance costs and avoid building new reporting systems for rare transactions.
Companies benefiting from distortive foreign subsidies face less scrutiny on minor transactions.

AmCham EU seeks lower compliance burdens in foreign subsidy rules

American Chamber of Commerce to the European Union, 6 Mar 2023

The group requests exemptions for market-based contributions and simplified merger procedures. They also urge clearer definitions to reduce administrative uncertainty.
This would lower compliance costs and protect sensitive commercial data.

German Industry Urges Simpler EU Foreign Subsidy Reporting

Bundesverband der Deutschen Industrie e.V., 6 Mar 2023

BDI requests a narrower definition of financial contributions and higher reporting thresholds. They propose excluding standard market transactions to reduce the volume of information submitted.
This would reduce administrative costs and prevent delays for critical infrastructure projects.

EuroCommerce urges simplified reporting for foreign financial subsidies

EuroCommerce, 3 Mar 2023

EuroCommerce proposes exempting financial contribution notifications from competitive tenders to reduce administrative burdens. They suggest limiting notification obligations to specific categories to simplify investigative proceedings. They also request protecting business secrets by allowing direct information sharing with regulators.
The proposal would reduce administrative burdens and simplify compliance for retail and wholesale companies.
EU regulators would lose oversight of smaller foreign subsidies that might collectively distort competition.

EFPIA calls for reduced administrative burdens in foreign subsidy rules

European Federation of Pharmaceutical Industries and Associations, 6 Mar 2023

EFPIA demands a simplified notification process and exemptions for subsidies governed by international trade agreements. They also seek clearer reporting waivers and improved rights of defense for investigated companies.
Streamlining these rules would reduce the immense logistical and financial costs of global compliance.
Public health systems lose out if excessive regulation discourages pharmaceutical companies from bidding on contracts.

BASF Urges EU to Reduce Foreign Subsidy Reporting Requirements

BASF SE, 6 Mar 2023

BASF seeks to reduce reporting burdens by raising financial thresholds for notifications. They also request a transitional period until 2026 to implement new data systems.
Reducing these requirements would save the company from massive administrative compliance costs.
The Commission loses oversight of smaller subsidies that might still distort competition.

Swedish Enterprise warns of 'unacceptable' complexity in subsidy rules

Confederation of Swedish Enterprise, 21 Feb 2023

Swedish Enterprise calls for a clearer definition of financial contributions to enable legally secure reporting. They propose ten amendments to simplify data collection and allow for aggregating transactions.
Reducing administrative burdens would lower business costs and prevent firms from over-implementing rules.

European industry urges Brussels to ease foreign subsidies red tape

European Round Table for Industry, 6 Mar 2023

ERT requests narrower reporting requirements and higher disclosure thresholds. They want a two-step approach with limited initial disclosure for non-problematic contributions, and detailed information only for potentially distortive subsidies. They also seek a three-year transitional period.
This would reduce compliance costs and administrative burden for multinational companies.
EU market protection weakens against potentially distortive subsidies from third countries.

Consultation response

Siemens AG, 6 Mar 2023

Suggestions for improvement March 2023 The draft Commission Implementing Regulation (IR) to Regulation (EU) 2022/2560 (FSR) contains good ideas to make the FSR workable for the Commission and less burdensome for the industry. It is positive, that the notifying parties may ask the Commission to…

General Electric warns of security risks in subsidy rules

General Electric Company, 3 Mar 2023

GE requests exemptions for competitive grants and tax measures accessible to all market participants. They also seek to exclude sensitive defense contracts to prevent legal and security conflicts.
This would shield the company from criminal liability and unnecessary administrative reporting costs.

AFEP urges Commission to cut red tape in subsidy reviews

Association Française des Entreprises Privées / French Association of Large Companies, 6 Mar 2023

AFEP calls for a drastic reduction in the volume of data companies must provide. They propose a step-by-step approach focusing only on financial contributions likely to distort the market.
These changes would lower compliance costs and protect companies' sensitive industrial strategies from disclosure.
Regulators might lack the comprehensive data needed to identify and block subtle foreign market distortions.

GSMA warns foreign subsidy rules create burdensome reporting duties

GSMA Europe, 6 Mar 2023

GSMA requests the Commission streamline reporting by limiting notifications to contributions likely to distort the market. They propose raising reporting thresholds and introducing a transitional period for implementation.
Higher thresholds and streamlined rules would lower administrative costs and prevent delays in deals.
Regulators may lose oversight as companies provide less detail on specific financial contributions.

Siemens Energy urges lighter reporting for foreign subsidy rules

Siemens Energy AG, 6 Mar 2023

Siemens Energy requests reducing the scope of reported foreign financial contributions to a manageable level. They propose using generic descriptions for unproblematic contributions and establishing a transitional period for compliance.
This would minimize administrative costs and prevent an extraordinarily burdensome workload for the company.
European regulators lose the granular oversight needed to detect and investigate subtle market distortions.

Invest Europe Urges Proportionality in Foreign Subsidy Reporting Rules

Invest Europe, 6 Mar 2023

The group requests a simplified approval process and reduced reporting requirements for investment funds. They advocate for aligning reporting thresholds across different regulatory regimes.
This would reduce administrative overhead and lower compliance costs for private equity firms.
The European economy loses investment if disproportionate regulations discourage firms from participating in transactions.

Samsung Urges Narrower Scope for Foreign Subsidy Reporting Rules

Samsung Electronics Europe, 6 Mar 2023

Samsung requests limiting reporting to financial contributions directly related to the specific EU transaction. They propose aligning the undertaking definition with merger law to avoid tracking data from uncontrolled affiliates. Finally, they seek a formal dispute mechanism for confidentiality claims.
This would reduce administrative costs and avoid the impractical tracking of unrelated conglomerate entities.
EU regulators lose broader oversight into global financial contributions not directly linked to specific transactions.

ESPO calls for clearer rules on foreign subsidy investigations

European Sea Ports Organisation, 6 Mar 2023

ESPO requests that the Commission clarify the criteria used to assess market distortions and the definition of an undertaking. They also ask for transparency regarding indicators used in the assessment of foreign subsidies.
Clearer rules would provide legal certainty for investors and maintain Europe's competitive position.
Foreign companies currently benefiting from unfair subsidies would lose their competitive advantage.

U.S. Chamber urges EU to narrow foreign subsidy rules

Chamber of Commerce of the United States of America, 6 Mar 2023

The Chamber requests narrowing the definition of foreign financial contributions and exempting investments tied to public policy goals. They also seek to limit reporting requirements to the previous three years.
Narrower rules would reduce administrative burdens and prevent the disclosure of confidential data.
Non-market economies face increased scrutiny as the primary targets of these refined regulations.

CCIA Europe urges simpler foreign subsidy reporting rules

Computer & Communications Industry Association, 6 Mar 2023

CCIA recommends exempting ordinary business transactions and classified information to minimize administrative burdens. They support using minimum value thresholds to simplify the administrative efforts for undertakings concerned. They also request a direct channel for subcontractors to protect sensitive business information.
These measures would reduce compliance costs and protect the industry's sensitive commercial data.
EU regulators would lose visibility into financial contributions that fall below specific thresholds.

Construction industry urges tougher rules on foreign subsidies

European Construction Industry Federation, 3 Mar 2023

The sector urges the Commission to quickly implement rules for ex officio investigations. They want to reverse the burden of proof for companies from non-market economies. Additionally, they suggest the balancing test should consider all possible negative impacts.
European contractors would face fairer competition against heavily subsidized international competitors.
Subsidized firms from non-EU countries would lose their unfair advantage in public tenders.

AEGIS Europe Urges EU to Simplify Foreign Subsidy Reporting

AEGIS Europe, 6 Mar 2023

AEGIS Europe wants to simplify reporting to avoid processing millions of data items. They propose introducing de minimis thresholds and limiting reports to specific relevant countries. They also seek to protect sensitive business data from being shared with public customers.
These changes would significantly reduce administrative burdens and protect sensitive commercial data.
The European Commission would receive less data, potentially missing some distortive foreign subsidies.

Fastweb urges simpler rules for reporting foreign state subsidies

Fastweb S.p.A., 6 Mar 2023

Fastweb requests that the effective notification date be the date of receipt. They also urge the Commission to limit information requirements to reduce administrative burdens.
Simplified procedures would prevent companies from being excluded from tenders due to minor shortcomings.
EU companies without foreign funding might face unfair competition if reporting standards are lowered.

Temasek urges EU to slash foreign subsidy reporting burdens

Temasek International Pte Ltd, 3 Mar 2023

Temasek requests limiting reporting to subsidies most likely to distort the internal market. They also propose narrowing the definition of notifying parties for investment fund portfolio companies.
The proposal would reduce administrative burdens and help firms avoid significant compliance challenges.
The Commission would receive less data on financial contributions, potentially missing some market distortions.

Consultation response

International Chamber of Commerce, 6 Mar 2023

The International Chamber of Commerce (ICC) understands that with the Foreign Subsidies Regulation (FSR), the EU aimed to introduce an effective and comparable control mechanism for third-country subsidies to undertakings operating in the EU internal market, in addition to the existing State aid…

Consultation response

Freshfields LLP, 6 Mar 2023

Please see attached document

Consultation response

China Chamber of Commerce to the EU, 6 Mar 2023

The China Chamber of Commerce to the EU (CCCEU) covers around 1,000 Chinese companies operating in the EU. The chamber and its members welcome this opportunity to provide feedback on the draft of the Implementation of the Foreign Subsidies Regulation (FSR) and recognise the Commissions effort in…

Consultation response

European Dredging Association, 3 Mar 2023

The European Construction Industry, represented by FIEC (European Construction Industry Federation), EIC (European International Contractors) and EuDA (European Dredging Association), hereby submit their comments on the draft Implementing Regulation of the Foreign Subsidies Regulation (FSR). The…

Consultation response

Canada Pension Plan Investment Board, 6 Mar 2023

This submission is made by Canada Pension Plan Investment Board (CPP Investments) and sets out observations following the publication of the Foreign Subsidies Regulation's (the FSR) draft implementing regulation (the IR) and relevant annexes on 6 February 2023. Please refer to the enclosed PDF…

Consultation response

Clifford Chance LLP, 6 Mar 2023

Please see the attached response of Clifford Chance LLP to the consultation on the Draft Implementing Regulation for the Foreign Subsidies Regulation

Consultation response

Association of in-house competition lawyers, 6 Mar 2023

Please find enclosed ICLA's input to the European Commission's public consultation on the Draft Implementing Regulation of the Foreign Subsidies Regulation. We are eager to continue our engagement with the European Commission to discuss our proposals in the coming weeks, and in the meantime remain…

Consultation response

European Business Initiative on Taxation, 6 Mar 2023

EBITs Members thank the European Commission for the opportunity to provide feedback on the proposed EU procedural rules for assessing distortive foreign subsidies (6 February 2023 6 March 2023). Please see EBIT's comments in the attached document.

Consultation response

, 6 Mar 2023

Please see the document attached, which contain Airbus comments.

Consultation response

Bucharest Chamber of Commerce and Industry, 5 Mar 2023

The Bucharest Chamber of Commerce and Industry (CCIB) read with great interest the current proposal for regulation on distortive foreign subsidies. CCIB understands the construction and importance of the EU single market as well as global business, seen from the public perspective as well as from…