European Union: Foreign Subsidies Regulation (FSR) Update - February 2026

In brief

On 9 January 2026, the Commission published guidelines on the application of certain provisions of the FSR (“FSR Guidelines”).

The FSR Guidelines provide guidance to companies engaged in M&A and public procurement in the EU on how the Commission will assess under the FSR (i) the criteria for distortion of competition; (ii) the balancing test for positive and negative effects on competition, and (iii) the Commission’s powers to request prior notification of below-threshold transactions and public procurement procedures.

The FSR Guidelines provide a roadmap for companies to argue why their transaction or participation in public procurement procedures should not raise concerns under the FSR and should be carefully considered when preparing for future notifications to the Commission under the FSR.

Download the full version of European Union: Foreign Subsidies Regulation (FSR) Update.