The European Commission proposes a new instrument to scrutinise foreign subsidies distorting the internal market

On 5 May 2021, the European Commission proposed a brand new instrument mimicking the EU State aid discipline, allowing it to scrutinise foreign subsidies distorting the internal market. On that basis, the European Commission would be empowered to block large public procurements or concentrations with a company that has received foreign subsidies distorting the internal market, or, at least, to remedy such distortive effects. The European Commission would also be entitled to investigate any other market transaction involving such a company and have the distortions remedied. Stakeholders may comment on the proposal until mid-July 2021 to feed in the coming legislative debate.

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By Carole Maczkovics

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