The New EU Foreign Subsidies Regulation and its Implications for Switzerland

Abstract

The EU has adopted a new unilateral instrument to control subsidies granted by non-EU countries, such as Switzerland, to companies operating in the EU. This subsidy control combines antitrust, state aid and trade rules, but applies directly to companies rather than to foreign states or granting authorities. Companies with some activities in the EU fall within the scope of this foreign subsidy regime, may be subject to ex officio investigations and must notify acquisitions of EU targets and public procurement in the EU above certain thresholds. Swiss authorities or public entities granting subsidies must take this new regime into account in order to better serve companies operating in Switzerland.

Keywords: EU law; Switzerland; EU state aid control; EU foreign subsidies control; EU foreign subsidies regulation

JEL Classification: state aid; subsidies; WTO law; EU law