Commission publishes guidelines on the Foreign Subsidies Regulation

Businesses get guidance on how the Commission assesses market distortion, including in public procurement: low-value tenders, subsidies below €4 million and aid for exceptional events need not be reviewed, but the Commission can require notification of mergers and tenders below the thresholds.

On 9 Jan 2026 the European Commission published guidelines on the Foreign Subsidies Regulation to give businesses more predictability. They explain how the Commission tests for market distortion (in two steps: strengthening of the competitive position, then the effect on competition), how in public procurement it judges whether a bid is unjustifiably cheap and substantially due to the subsidy, and how it weighs negative against positive effects. They also set out when the Commission can require notification of mergers and tenders that fall below the thresholds; subsidies below €4 million, among others, are exempt from review. The regulation has applied since 13 Jul 2023, and by 14 Jul 2026 the Commission must report to Parliament and the Council on its enforcement practice. (LOK Report, 9 Jan 2026)