{"id":25019,"date":"2024-04-29T15:53:23","date_gmt":"2024-04-29T13:53:23","guid":{"rendered":"https:\/\/www.lpalaw.com\/smart-alert-mise-en-oeuvre-du-reglement-relatif-aux-subventions-etrangeres-la-commission-europeenne-ouvre-plusieurs-enquetes-approfondies-dans-les-secteurs-du-transport-et-de-lenergie\/"},"modified":"2024-04-30T10:34:54","modified_gmt":"2024-04-30T08:34:54","slug":"smart-alert-mise-en-oeuvre-du-reglement-relatif-aux-subventions-etrangeres-la-commission-europeenne-ouvre-plusieurs-enquetes-approfondies-dans-les-secteurs-du-transport-et-de-lenergie","status":"publish","type":"post","link":"https:\/\/www.lpalaw.com\/en\/smart-alert-mise-en-oeuvre-du-reglement-relatif-aux-subventions-etrangeres-la-commission-europeenne-ouvre-plusieurs-enquetes-approfondies-dans-les-secteurs-du-transport-et-de-lenergie\/","title":{"rendered":"Smart Alert | Implementation of the EU Foreign Subsidies Regulation: The European Commission launches several in-depth investigations in transport and energy sectors."},"content":{"rendered":"

April 29, 2024<\/p>\n

Smart Alert |Implementation of the EU Foreign Subsidies Regulation: The European Commission launches several in-depth investigations in transport and energy sectors.<\/strong><\/h2>\n

Since the entry into force of Regulation (EU) 2022\/2560 on foreign subsidies distorting the internal market in October 2023<\/a> (\u201cFSR\u201d), the European Commission launched investigations on the impact of foreign subsidies granted to companies bidding for some European public tenders in the transport and energy sectors.<\/span><\/p>\n

Shortly after the coming into force of FSR, the Commission initiated a preliminary investigation on<\/strong> imports of electric vehicles from China<\/strong>. This investigation, which is still ongoing, aims to determine whether foreign subsidies granted to electric vehicle manufacturers by the People\u2019s Republic of China are adversely impacting the European Union’s industry, and specifically European e-car manufacturers.<\/span><\/p>\n

Even if this investigation is carried out under a different regulation, European Regulation (EU) 2016\/1037 on protection against subsidised imports from countries not members of the European Union<\/a>, it is in line with FSR, which pursue the same objective of avoiding distortions of competition resulting from public subsidies in the European market.<\/span><\/p>\n

In February 2024, the European Commission started its first in-depth investigation under FSR in response to suspicious bids submitted in a public tender for the supply and maintenance of trains of the Bulgarian Ministry of Transport and Communications<\/strong>.<\/span><\/p>\n

This inquiry was started following the notification filed under FSR by the bidder, Quingdao Sifang Locomotive Co, Ltd, a subsidiary of the world’s main manufacturer of railway equipment. The investigation revealed that the amount of the subsidy granted was \u20ac1.7 billion, i.e<\/em> five times higher than the \u20ac336 million bid apparently submitted by the Chinese company. The company chose to withdraw its bid before the European Commission had a chance to rule on the impact of this subsidy on competition on the European market.<\/span><\/p>\n

Since then, the European Commission opened several other in-depth investigations in the energy sector. The background is presumably the European dependence on third countries for critical technologies and production of raw materials.<\/span><\/p>\n

On 3 April 2024, the European Commission announced two in-depth investigations on foreign subsidies granted to companies bidding in a public tender for the design, construction and operation of a photovoltaic park in Romania<\/strong>. In this sector, less than 3% of solar panels installed in the EU are manufactured in Europe.<\/span><\/p>\n

These investigations follow FSR filings submitted by the following consortia:<\/span><\/p>\n