Study on the Simplification and Review of the Foreign Subsidies Regulation (FSR)

Practice Area:
Client: european-commission-directorate-general-for-competition-dg-comp-and-the-directorate-general-for-internal-market-industry-entrepreneurship-and-smes-dg-grow
Published: July, 2026
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LE Europe was commissioned by the European Commission’s DG COMP and DG GROW to conduct a study on the simplification and review of the EU Foreign Subsidies Regulation (FSR).

The study supports the Commission’s review under Article 52(2) of the FSR, which requires it to examine its implementation and enforcement practice every three years. Drawing on the first three years of enforcement, the analysis comprised:

  • surveys of legal practitioners and contracting authorities;
  • a review of international developments in third-country subsidy control systems; and
  • an analysis of the Commission’s case practice in concentrations and public procurement.

 Key findings

  • Stakeholders generally understand the FSR’s objectives, but report administrative burdens, delays and legal uncertainty, particularly around the broad definition and reporting of foreign financial contributions.
  • Internationally, third-country subsidy control regimes have evolved only gradually since the FSR’s adoption, leaving the EU’s system distinctive in its comprehensive ex ante and ex post controls.
  • Regarding case practice, the Commission applies a structured, evidence-based and effects-driven methodology.
  • In concentration cases, foreign financial contributions are frequently reported, especially by investment funds, but are rarely found to constitute distortive foreign subsidies.
  • In public procurement, the framework appears coherent and effective, though operational challenges arise from incomplete or incorrect bidder submissions and recurring misunderstandings of notification obligations.

Overall, the study finds that the FSR is functioning as intended and is capable of identifying potentially distortive foreign subsidies, but targeted refinements could improve efficiency and legal certainty, including clearer guidance, more proportionate reporting obligations, adjusted thresholds and more standardised notification tools.

The full study is published here.

Read more about how the study has informed the Commission’s review and proposed adjustments to the FSR here.

Contacts: Dano Meiske [email protected] and Dr Paula Ramada [email protected]