The European Union Foreign Subsidies Regulation will enter into force at the end of 2022. From September 2023 onwards, companies carrying out concentrations (mergers and acquisitions and JVs where one of the parties has a global turnover exceeding €500 million), or involved in procurement procedures above €250 million, will have to inform the European Commission about ‘financial contributions’ such as subsidies, the tax break that they received from non-EU governments, which exceed relative low thresholds.
More widely, the Commission can open an investigation into such subsidies under its own initiative. Where the financial contribution/subsidy has a distortive effect on the EU internal market, the Commission can prohibit the transaction/tender award, or otherwise intervene to impose remedies.
This important new piece of legislation is intended to ‘level the playing field for EU companies, competing with undertakings from third companies. It will pose major substantive and procedural challenges for all energy companies, whether EU or from abroad.
During this policy debate, Christof Schoser, the Head of Task Force Third- County Subsidies at the European Commission’s Directorate-General for Competition will present the regulation on foreign subsidies and explain how it is intended to work in practice – notably how companies should prepare to comply with the notification obligation.
Mr Schoser will also highlight how the Commission might interpret the notion of a distortive effect on the EU internal market.
Energy companies already need to start preparing for this Regulation now, and this is a unique opportunity to hear first-hand how they should do so.
Programme:
Introduction and moderation
Christopher Jones | Florence School of Regulation (FSR)
Keynote presentation
Christof Schoser | European Commission
Discussant:
Ilaria Conti | FSR
Marzia Sesini | FSR
Jesse Scott (TBC)