On July 14, 2026, the European Commission published its report reviewing the Foreign Subsidies Regulation’s (FSR) first three years of operation.[1] The Commission found the regime “fit for purpose” and an “effective tool” to tackle distortions from foreign subsidies in the EU single market. However, it also recognized broad concerns about the regime’s efficiency and the disproportionate cost of compliance.
On June 30, 2026, the European Commission published its Staff Working Document (the SWD)[1] accompanying the guidelines on its enforcement of the Foreign Subsidies Regulation (FSR) (the Guidelines)[2] published on January 9, 2026.[3] The SWD sets out the feedback received through various rounds of consultation, and explains how this feedback was taken into account in the final Guidelines. This alert memorandum reviews the key stakeholder-driven changes reflected in the final Guidelines and their implications for the Commission’s future enforcement practice.