The EU Commission has issued its first decision under the Foreign Subsidies Regulation (FSR), concluding an investigation into a commercial acquisition involving United Arab Emirates (UAE)-owned Emirates Telecommunications Group Company PJSC (e&). The Commission found e& benefits from foreign subsidies, accepted commitments from the company to address the distortions resulting from the subsidies, and approved the transaction. The FSR, which came into force in January 2023, gives the Commission the authority to investigate subsidies granted by non-EU public authorities to companies operating within the EU and take corrective measures if necessary.
Trade Committee Chair Bernd Lange (S&D, DE) made the following statement today about the Commission’s decision concluding the first in-depth investigation under the Foreign Subsidies Regulation.
“Today’s decision shows that the EU is willing to defend its market against unfair foreign competition while remaining open to trade and investment. The Commission has conducted a very thorough investigation, and its decision is balanced and well-reasoned. This decision is further proof that the regulation fills an important gap in our legislation. It is now also crystal clear that this new instrument is not politically motivated and is not aimed at any particular country.
I am proud that the hard work of the last legislative term is starting to bear fruit. By beefing up our trade toolbox, we have ensured that the EU is becoming a more autonomous player on the international trade stage and that we no longer tolerate unfair trade practices. Also in this new mandate, our default position must be that we remain open to trade and investment, while applying our defensive instruments when necessary.”
