By: Chantal Lavoie (Lavoie Legal)
The European Commission released for consultation on 17 June 2020 its much-awaited white paper on levelling the playing field as regards foreign subsidies (the White paper). Its purpose is to address distortions to the internal market resulting from foreign subsidies. The paper is based on a “model of open strategic autonomy” for Europe. The public consultation is ongoing until 23 September 2020. The article below discusses the scope and content of the White paper and comments in particular on the impact of the proposed measures on acquisitions of EU targets.
The White paper – scope and content
The paper proposes a framework to address what is viewed as a “regulatory gap” in dealing with foreign subsidies distorting the internal market. The framework consist of different modules or measures depending on the type of foreign subsidy. Competent supervisory authorities would be designated by the European Commission and Member States and would have shared competences and enforcement powers to be determined. A cooperation mechanism along the lines that currently exists between the Commission and national competition authorities through the European Competition Network would be put in place…