New notification obligation in connection with company transactions and participation in public procurement

On 12 July 2023, the regulation on foreign subsidies distorting competition in the internal market entered into force. The regulation provides the European Commission with a number of tools for addressing foreign subsidies that may distort competition in the internal market. Among other things, the regulation introduces an obligation to notify company transactions and undertakings' participation in public procurement to the European Commission when certain thresholds have been exceeded. Infringement of the notification obligation is subject to a fine and may entail fines of up to 10% of the undertaking's turnover in the precedin financial year.