On January 9, 2025, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) released its decision in a trade and investment barrier investigation into the European Union’s Foreign Subsidies Regulation (“FSR”).
EU Consults on Foreign Subsidies Regulation Guidelines
On March 5, 2025, the European Commission (EC) launched a public consultation on the EU Foreign Subsidies Regulation (FSR). The consultation will run to April 2, 2025.
The EU Foreign Subsidies Regulation: 2024 in Review and Predictions for 2025
In 2024, the FSR’s first year in operation saw a large number of filings but limited enforcement, with only a handful of Phase 2 reviews, one conditional merger clearance and two ex officio cases. With the FSR now up and running, in 2025, we expect the EC’s focus to be on demonstrating the FSR’s value and delivering practical results by stepping up enforcement, building a corpus of reasoned decisions, and – it is hoped – developing a more streamlined process for non-issue cases.
General Court finds Commission Failed to Act on Potentially Unlawful Dutch State Aid for Electric Pulse Fishing
On November 13, 2024, the General Court ruled in Case T-141/23 that the Commission failed to meet its obligations under Regulation 2015/1589 (“State aid Procedural Regulation” or “Regulation”),[1] which governs the application of Article 108 TFEU on State aid review in the EU.[2] The General Court held that the Commission’s inaction regarding alleged illegal aid granted by the Kingdom of the Netherlands (“the Netherlands”) to Dutch beam trawlers with pulsed electric currents – prior to the formal ban on electric fishing in the EU in July 2021– constituted a failure to act.
The French Competition Authority Fines Electrical Equipment Manufacturers and Distributors for Resale Price Fixing
On October 29, 2024, the French Competition Authority (“FCA”) imposed a fine totalling €470 million on manufacturers and distributors of low-voltage electrical equipment (the “Decision”) for vertical resale price fixing.[1] The FCA sanctioned two vertical price agreements (i) between Schneider Electric and its distributors Rexel and Sonepar implemented from December 2012 to September 2018, and (ii) between Legrand and its distributor Rexel from May 2012 and September 2015.
First Merger Commitments Adopted under the EU Foreign Subsidies Regulation
On September 24, 2024, the European Commission (EC) conditionally approved, under the Foreign Subsidies Regulation (FSR), the acquisition of PPF Telecom Group (PPF) by Emirates Telecommunications Group Company PJSC (e&).[1] The EC’s clearance is subject to commitments valid for 10 years, which may be extended by another 5 years. This is the EC’s first Phase II conditional clearance decision under the FSR, which started to apply on July 12, 2023.[2].
The Paris Court of Appeals states that granting a stay of execution involves analyzing only the “manifestly excessive consequences” of a sanction imposed, and not its merits in Bisphenol A case
In a decision dated July 24, 2024,[1] the Paris Court of Appeals granted a stay of execution in relation to a €2,700,000 fine imposed on the Association Nationale des Industries Alimentaires (“ANIA”) by the French Competition Authority (“FCA”) in the Bisphenol A case only considering the manifestly excessive consequences of such sanction in view of ANIA’s financial situation and without examining its merits.
The EU Foreign Subsidies Regulation in Practice: First Cases and Enforcement Trends
Almost eight months since taking full effect, the EU’s enforcement agenda for the Foreign Subsidies Regulation (FSR) is coming into focus. The European Commission (EC) has launched several in-depth and ex officio cases, and reviewed over 150 notifications.
The French Competition Authority fines Chocolats De Neuville for hindering its franchisees’ commercial freedom
On February 6, 2024, the French Competition Authority (“FCA”) imposed a four million euros fine on chocolate maker De Neuville (“De Neuville”) and its parent company Savencia Holding for restricting their franchisees’ freedom to sell De Neuville chocolates online and to professional customers.[1]
