On 09 January the European Commission published the final version of the Foreign Subsidies Regulation (FSR) Guidelines.

More than two years in effect the impact of the FSR - particularly on dealmaking, investment strategies, and compliance planning - is real and growing.

As the Guidelines are likely to become a key reference point for businesses navigating FSR risks, advisors and their clients will take comfort from the practical clarifications on how the Commission will proceed with assessments of:

·        The criteria for determining the existence of a distortion of competition (Article 4(1)); 

·        A distortion in public procurement procedures (Article 27); 

·        How the Commission applies the balancing test (Article 6);

·        The new ‘safe harbours’ for low-value procedures          and subsidies.

Commission President Von der Leyen’s Mission Letter to EVP Teresa Ribera explicitly called for the “vigorous enforcement” of the FSR especially as regards concentrations and “…including by proactively mapping the most problematic practices that could lead to competition distortions”.

Senior EC officials have said they plan to invest more in ex-officio investigations to enable the Commission to focus its resources on the most distortive practices.

Participants in this first Europe-wide 'Chatham House rule' in-person / webinar discussion (including Q&As) with both DG COMP and DG GROW will benefit from learning about the actual approach the Commission will take in its antitrust and procurement assessments when applying the Guidelines, especially given the likely high-level of scrutiny going forward.

List of participants (updated 03 February)

Press release (09.01.26) 

FSR Guidelines Factsheet (09.01.26)

FSR Guidelines

DG COMP's FSR webpage

DG GROW's FSR webpage

The FSR 2026 Guidelines - towards greater clarity? H. Piffaut, DG COMP (05.03.25)