Teresa Capelli

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On January 9, 2026, the European Commission published long-awaited guidelines on its enforcement of the Foreign Subsidies Regulation (“FSR”) (the “Guidelines”).[1] In addition to delineating the FSR’s jurisdictional scope, the Guidelines clarify three key concepts: (1) when a foreign subsidy distorts competition; (2) how a distortion’s negative and positive effects are balanced against each other (the “Balancing Test”); and (3) when the Commission may use its so-called “call-in powers” to request the prior notification of transactions and public bids that fall below the mandatory FSR thresholds.

In the past year, the General Court has ruled on several challenges to Commission dawn raids initiated against Symrise,[1] Michelin,[2] and Red Bull,[3] clarifying the limits of the Commission’s investigatory powers. In all three cases, the General Court upheld the legality of the inspections,[4] though refined the evidentiary and procedural standards governing dawn raids.[5] The most recent Michelin and Red Bull judgments, in particular: (i) clarified what constitutes “sufficient indicia” for the Commission to initiate a dawn raid; (ii) validated the Commission’s use of new digital tools to gather indicia for dawn raids and its practice of gathering information onsite and later reviewing that information over extended periods of time at the Commission’s premises (“extended inspection”); and (iii) confirmed the Commission’s margin of discretion in selecting the most appropriate investigative measure—such as dawn raids or requests for information—in antitrust investigations.

As part of our response to the European Commission’s consultation on possible reforms to its merger control guidelines,[1] we provided our views on Topic C – Innovation And Other Dynamic Elements In Merger Control.

In July 2025, the Commission published its draft Foreign Subsidies Regulation (FSR) guidelines for consultation. The guidelines discuss the FSR’s distortion and balancing tests and the EC’s powers to call in “below threshold” mergers and public tenders for ex ante review. 

On January 28, 2025, the Grand Chamber of the Court of Justice issued a much-awaited preliminary ruling that clarifies when national laws that prohibit the transfer of antitrust compensation claims to bring a collective action breach EU law.[1]  The Court of Justice held that, to respect the principle of effectiveness, national procedural rules cannot limit recourse to such group actions where it is the only procedural way for individuals to bring a claim for compensation.  While it is clear that the Court of Justice did not consider Member States are under an obligation to always allow for group action lawsuits, the implications for private enforcement are yet unclear.  This will likely be the subject of additional litigation and preliminary rulings.