A Chinese security equipment company was recently raided by the European Commission under the Foreign Subsidies Regulation (FSR). This marks the first raid conducted by the EU under this regulation, which aims to ensure a fair competition environment within the single market.
Details of the Investigation
The EU Commission initiated the investigation ‘ex officio’ without a specific complaint prompting the action. The raids took place in the Netherlands and Poland, with authorities seizing IT equipment, scrutinizing documents, and accessing data from the company. The identity of the company has not been disclosed by the EU Commission.
A source familiar with the issue confirmed that the raids were part of an investigation instigated by the EU Commission itself. The Chinese Chamber of Commerce in the EU (CCCEU) expressed serious concerns over the unannounced inspections on Chinese companies in the EU.
The CCCEU highlighted that such actions send a negative message to non-EU companies operating in the bloc. The chamber urged the European authorities to protect the rights and interests of foreign companies in the EU.
Several investigations into Chinese companies have been opened by the EU Commission under the FSR. The latest probe involves China’s public procurement of medical devices, indicating a broader scrutiny of foreign subsidies impacting the single market.
