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EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation

 |  April 23, 2024

The European Commission made history on Tuesday by initiating its first unannounced raid under the Foreign Subsidies Regulation. These surprise raids were carried out at a company operating in the security equipment sector, marking a significant step in the EU’s efforts to ensure fair competition within its market.

Implemented since July 2023, the Foreign Subsidies Regulation was designed to address distortions caused by foreign subsidies and uphold a level playing field for all companies operating within the European Union. While the Commission has previously launched investigations under this regulation, including scrutinizing Chinese solar panel manufacturers and wind turbine producers, this is the first instance of conducting on-site inspections.

In a statement released by the EU institution, it was revealed that the Commission has reason to believe that the inspected company may have received foreign subsidies capable of distorting the internal market. However, the identity of the company, as well as the countries involved in the investigation, remains undisclosed at this preliminary stage.

Commission officials, collaborating with their national counterparts, conducted raids at the company’s premises across various member states. While the investigation is ongoing, the Commission refrains from confirming whether the initiative stemmed from a specific complaint or was initiated independently.

Notably, the EU executive possesses the authority to initiate probes autonomously, underscoring its commitment to ensuring compliance with regulatory standards. Moreover, there exists no fixed deadline for the accumulation of evidence and information essential for evaluating whether the company has indeed received distorting foreign subsidies.

Source: Euro News