Regulation 2022/2560 - Foreign subsidies distorting the internal market

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Current status

This regulation has been published on December 23, 2022 and entered into force on January 11, 2023.


Key information

official title

Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market
Legal instrument Regulation
Number legal act Regulation 2022/2560
Original proposal COM(2021)223 EN
CELEX number i 32022R2560


Key dates

Document 14-12-2022; Date of signature
Publication in Official Journal 23-12-2022; OJ L 330 p. 1-45
Signature 14-12-2022
Effect 11-01-2023; Application Partial application See Art 54.3
12-01-2023; Entry into force Date pub. +20 See Art 54.1
12-07-2023; Application See Art 54.2
12-10-2023; Application Partial application See Art 54.4
12-01-2024; Application Partial application See Art 54.3
Deadline 12-07-2023; See Art 47.4
13-07-2026; See Art 52.2
12-01-2030; See Art 50.2 And 50.3
End of validity 31-12-9999


Legislative text



Official Journal of the European Union

L 330/1



of 14 December 2022

on foreign subsidies distorting the internal market


Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 114 and 207 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Acting in accordance with the ordinary legislative procedure (2),




A strong, open and competitive internal market enables both European and foreign undertakings to compete on merits. The Union benefits from a sophisticated and effective system of State aid control, aiming at ensuring fair conditions for all undertakings engaging in an economic activity in the internal market. This State aid control system prevents Member States from granting State aid that unduly distorts competition in the internal market.



At the same time, both private undertakings and public undertakings which are directly or indirectly controlled or owned by a state, might receive subsidies from third countries, which are then used, for instance, to finance economic activities in the internal market in any sector of the economy, such as participation in public procurement procedures, or the acquisition of undertakings, including those with strategic assets such as critical infrastructure and innovative technologies. Such foreign subsidies are currently not subject to Union State aid rules.



This Regulation covers all economic sectors, including those that are of strategic interest to the Union and critical infrastructures, such as those mentioned in Article 4(1), point (a), of Regulation (EU) 2019/452 of the European Parliament and of the Council (3).



Foreign subsidies can distort the internal market and undermine the level playing field for various economic activities in the Union. This could in particular occur in the context of concentrations entailing a change of control over Union undertakings, where such concentrations are fully or partially financed through foreign subsidies, or where economic operators benefiting from foreign subsidies are awarded contracts in the Union.



No existing Union instruments address distortions caused by foreign subsidies. Trade defence instruments enable the Commission to act when subsidised goods are imported into the Union, but not when foreign subsidies take the form of subsidised investments, or when services and financial flows are concerned. Under the WTO Agreement on Subsidies and Countervailing Measures, the Union has the possibility to initiate State-to-State dispute settlement against certain foreign subsidies granted by WTO members and limited to goods.



It is therefore necessary to complement existing Union instruments with a new tool to effectively deal with distortions in the internal market caused by foreign subsidies in order to ensure a level playing field. In particular, the new tool complements Union State aid rules which deal with distortions in the internal market caused by Member State subsidies.



It is important that rules and procedures to investigate foreign subsidies that actually or potentially distort the internal market be laid down and, where relevant, that those distortions be redressed. Foreign subsidies could distort the internal market if an undertaking benefitting from the foreign subsidy engages in an economic activity in the Union. The proper application and enforcement of this Regulation are to contribute to the resilience of the internal market...


This text has been adopted from EUR-Lex.


Original proposal



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