The European Commission has declared the Foreign Subsidies Regulation (FSR) fit for purpose after its first three years of implementation, reporting that the instrument has closed a regulatory gap on foreign subsidies distorting the internal market. In a report published on 14 July 2026, the Commission notes that the FSR, which entered into force on 13 January 2023 and became applicable on 13 July 2023, has generated a higher-than-expected volume of notifications: by 31 May 2026, the Commission received 273 formal concentration notifications, around 100 per year, far exceeding initial projections of 30–40 per year. Of these, 247 were closed after a preliminary review, four were withdrawn, and 19 remain ongoing. The Commission launched three in-depth concentration investigations: e&/PPF Telecom, ADNOC/Covestro, and JD.COM/CECONOMY, the last still ongoing. Two ex officio in-depth investigations were opened into Nuctech (11 December 2025) and Goldwind (3 February 2026), both ongoing. The report covers all sectors and economic activities in the EU internal market, with the Commission enforcing the FSR exclusively: DG Competition handles concentrations and general ex officio cases, while DG GROW handles public procurement. The Commission adopted Implementing Regulation (EU) 2023/1441 on 10 July 2023, published FSR Guidelines in January 2026, and regularly updates FSR Q&As. Stakeholders broadly welcome the FSR's objectives but call for simplification, higher legal certainty on concepts such as foreign financial contributions, distortion assessment, and the balancing test. The report signals that the Commission will consider targeted improvements to reduce notification costs and increase predictability, while maintaining the regulation's core effectiveness.
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