FSR Alert – first in-depth investigation under Regulation 2022/2560

The European Commission has just announced the opening of the first in-depth investigation under Regulation 2022/2560 of 14 December 2022 on foreign subsidies distorting the internal market in connection with a call for tenders in Bulgaria involving a Chinese bidder.

The tender concerned the supply of rolling stock and was worth €610 million. One of the bidders, a subsidiary of CRRC Corporation, a Chinese state-owned company, had to notify the receipt of financial contributions from a third country in excess of €4 million over the three years preceding the notification. Examination of this notification may lead to a ban on awarding the contract to this subsidiary.

The Regulation is therefore proving its importance in a sector where, a few years ago, the merger between Alstom and Siemens was prohibited by the European Commission on competition grounds. Find out more about the regulation on foreign subsidies distorting the internal market at: https://www.uggc.com/reglement-relatif-aux-subventions-etrangeres-faussant-le-marche-interieur/ with Michel Ponsard and Benjamin de Sevin, partners at UGGC Avocats