The European Commission conducted unannounced inspections on Tuesday at a company operating in the security equipment sector. These inspections mark the first instance conducted under the Foreign Subsidies Regulation, which has been in effect since July 2023. The primary objective of these new regulations is to address distortions arising from foreign subsidies and ensure fair competition among companies in the EU market.
Investigation and Actions
Several investigations have been initiated by the Commission under the Foreign Subsidies Regulation, with a focus on industries such as Chinese solar panel manufacturers and wind turbine producers. While the specific company subjected to the recent inspection has not been disclosed, the Commission cited concerns regarding potential foreign subsidies that could impact the internal market.
Commission officials, in collaboration with national authorities, conducted raids at the company’s premises across various EU member states. As the investigation is in its early stages, the company and countries involved have not been named publicly. The Commission clarified that the initiation of the inspection may not be based on a specific complaint but can also stem from internal probes.
If substantial evidence of distortive foreign subsidies is uncovered, the Commission will proceed with a detailed investigation. Otherwise, the identities of the company and the member states involved will be disclosed at a later stage. It is important to note that the inspections do not confirm the receipt of foreign subsidies or predefine the investigation’s outcome.
