EU
Foreign Subsidies Regulation
The Commission published a Staff Working Document to clarify how it will determine when a foreign subsidy distorts the internal market and how it will apply the balancing test under the Foreign Subsidies Regulation. The document provides clarification on the interpretation and the assessment of the concept of distortion for public procurement procedures and the Commission's approach to subsidies most likely to distort the single market, such as unlimited guarantees. The Commission intends to publish further guidelines on the Regulation.
As mentioned in previous updates, the Foreign Subsidies Regulation aims to prevent distortions in the EU internal market caused by foreign subsidies, including in the context of public procurement procedures conducted in the EU. It requires companies to notify their tenders when the estimated value of the contract exceeds €250 million, and when the company has been granted at least €4 million in foreign financial contributions from a third country in the three years before the notification. It gives the Commission certain powers to investigate and order redressive measures.
UK
Public Procurement Act 2023
The UK Government continues to add to the guidance on the procure and manage phases of the new procurement regime, available here.
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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.