Closing a Regulatory Gap - A Critical Assessment of the Foreign Subsidies Regulation in Light of the Principle of Legal Certainty
(2026) JURM02 20261Department of Law
Faculty of Law
- Abstract (Swedish)
- EU:s förordning om utländska subventioner, som trädde i kraft den 12 januari 2023, utgör ett nytt instrument inom EU:s konkurrensrättsliga ramverk och syftar till att säkerställa lika konkurrensvillkor på den inre marknaden genom att motverka snedvridningar orsakade av utländska subventioner. Förordningen infördes mot bakgrund av farhågor om att subventioner från tredjeländer kunde snedvrida konkurrensen på den inre marknaden utan att detta på ett effektivt sätt kunde hanteras genom befintliga regelverk.
Förordningen syftar till att fylla denna regleringslucka genom att inrätta ett
nytt ramverk för att hantera utländska subventioner som snedvrider konkurrensen på den inre marknaden. Den bygger på tre utredningsverktyg tillgängliga för... (More) - EU:s förordning om utländska subventioner, som trädde i kraft den 12 januari 2023, utgör ett nytt instrument inom EU:s konkurrensrättsliga ramverk och syftar till att säkerställa lika konkurrensvillkor på den inre marknaden genom att motverka snedvridningar orsakade av utländska subventioner. Förordningen infördes mot bakgrund av farhågor om att subventioner från tredjeländer kunde snedvrida konkurrensen på den inre marknaden utan att detta på ett effektivt sätt kunde hanteras genom befintliga regelverk.
Förordningen syftar till att fylla denna regleringslucka genom att inrätta ett
nytt ramverk för att hantera utländska subventioner som snedvrider konkurrensen på den inre marknaden. Den bygger på tre utredningsverktyg tillgängliga för kommissionen, bestående av två anmälningsskyldigheter samt ett omfattande ex officio-verktyg, enligt vilket kommissionen kan inleda undersökningar av utländska subventioner oberoende av subventionens storlek eller den ekonomiska verksamhet som bedrivs i EU. Därutöver inför FSR särskilda verktyg för att bedöma en subventions konkurrenssnedvridande effekter på den inre marknaden, inklusive ett snedvridningstest och ett avvägningstest.
FSR har emellertid kritiserats för att bygga på breda definitioner och öppna bestämmelser som ger kommissionen ett betydande utrymme för skönsmässig bedömning vid tillämpningen. Enligt den allmänna rättssäkerhetsprincipen ska EU- lagstiftning vara klar, precis och förutsebar så att rättssubjekt kan fastställa sina rättigheter och skyldigheter samt förutse de rättsliga konsekvenserna av sitt handlande.
Mot denna bakgrund undersöker uppsatsen i vilken utsträckning FSR uppfyller de krav som följer av rättssäkerhetsprincipen, däribland kraven på klarhet och förutsebarhet. Uppsatsen tillämpar en rättsdogmatisk och en EU-rättslig metod, och bygger främst på EU:s primärrätt och sekundärrätt, relevant praxis samt doktrin. På denna grund analyseras huruvida förordningen, särskilt definitionen av en ”utländsk subvention”, snedvridningstestet, avvägningstestet samt det processuella ramverket, uppfyller de krav som följer av rättssäkerhetsprincipen.
Uppsatsen drar slutsatsen att FSR, även om den adresserar en viktig regleringslucka i EU:s rättsordning, väcker vissa frågor i ljuset av rättssäkerhetsprincipen, särskilt till följd av förordningens användning av breda begrepp och ett omfattande utrymme för kommissionens skönsmässiga bedömning. Däremot, mot bakgrund av att regelverket är relativt nytt, är det svårt att dra
några definitiva slutsatser. Även om en viss flexibilitet kan vara nödvändig för att effektivt motverka snedvridande utländska subventioner, skulle tydligare vägledning och mer transparenta bedömningskriterier kunna stärka rättssäkerheten. (Less) - Abstract
- The FSR, which entered into force on 12 January 2023, is a new instrument within the EU competition law framework aimed at ensuring a level playing field in the internal market by addressing distortions caused by foreign subsidies. It was introduced in response to concerns that subsidies granted by non-EU countries could distort competition within the internal market without being effectively addressed under existing frameworks.
The Regulation seeks to fill this regulatory gap by establishing a new enforcement regime for foreign subsidies that distort competition within the internal market. It is structured around three investigative ‘tools’ available to the Commission, consisting of two notification-based requirements, as well as a... (More) - The FSR, which entered into force on 12 January 2023, is a new instrument within the EU competition law framework aimed at ensuring a level playing field in the internal market by addressing distortions caused by foreign subsidies. It was introduced in response to concerns that subsidies granted by non-EU countries could distort competition within the internal market without being effectively addressed under existing frameworks.
The Regulation seeks to fill this regulatory gap by establishing a new enforcement regime for foreign subsidies that distort competition within the internal market. It is structured around three investigative ‘tools’ available to the Commission, consisting of two notification-based requirements, as well as a broad ex officio investigative instrument, where the Commission may investigate foreign subsidies, regardless of the level of the subsidy or the economic activity in the EU possibly affected by the subsidy. In addition, the FSR introduces distinct assessment tools, including a distortion test and a balancing test, through which the Commission determines whether a foreign subsidy has distortive effects on the internal market.
However, the FSR has been criticized for relying on broad definitions and open-ended provisions that grant the Commission considerable discretion in its application, thereby leaving undertakings with limited ex ante predictability. Under the general principle of legal certainty, EU legislation is required to be clear, precise, and foreseeable so that those subject to it can ascertain their rights and obligations and foresee the legal consequences of their conduct.
Against this background, this thesis examines to what extent the FSR fulfills the requirements imposed by the principle of legal certainty, with regard to the requirements, such as clarity and predictability. The thesis applies a doctrinal legal method and the EU legal method, drawing primarily on EU primary and secondary law, relevant case law, Commission practice, and legal doctrine. In doing so, the thesis assesses whether the Regulation, particularly the definition of a ‘foreign subsidy’, the distortion test, the balancing test, as well as the procedural framework, meet the requirements imposed by the principle of legal certainty.
The thesis concludes that, although the FSR addresses an important regulatory gap in the EU legal framework, several of its provisions raise questions under the principle of legal certainty, in particular due to broad concepts and significant Commission discretion. At the same time, given the novelty of the framework and the still limited decisional practice, it is difficult to draw any definitive conclusions. However, while a degree of flexibility may be necessary to effectively address distortive foreign subsidies, greater guidance, transparent assessment criteria, and a more structured interpretative frame-work would strengthen legal certainty for undertakings. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/student-papers/record/9227470
- author
- Karlsson, Matilda LU
- supervisor
- organization
- course
- JURM02 20261
- year
- 2026
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- EU law, competition law, trade law
- language
- English
- id
- 9227470
- date added to LUP
- 2026-06-08 16:09:39
- date last changed
- 2026-06-12 12:03:16
@misc{9227470,
abstract = {{The FSR, which entered into force on 12 January 2023, is a new instrument within the EU competition law framework aimed at ensuring a level playing field in the internal market by addressing distortions caused by foreign subsidies. It was introduced in response to concerns that subsidies granted by non-EU countries could distort competition within the internal market without being effectively addressed under existing frameworks.
The Regulation seeks to fill this regulatory gap by establishing a new enforcement regime for foreign subsidies that distort competition within the internal market. It is structured around three investigative ‘tools’ available to the Commission, consisting of two notification-based requirements, as well as a broad ex officio investigative instrument, where the Commission may investigate foreign subsidies, regardless of the level of the subsidy or the economic activity in the EU possibly affected by the subsidy. In addition, the FSR introduces distinct assessment tools, including a distortion test and a balancing test, through which the Commission determines whether a foreign subsidy has distortive effects on the internal market.
However, the FSR has been criticized for relying on broad definitions and open-ended provisions that grant the Commission considerable discretion in its application, thereby leaving undertakings with limited ex ante predictability. Under the general principle of legal certainty, EU legislation is required to be clear, precise, and foreseeable so that those subject to it can ascertain their rights and obligations and foresee the legal consequences of their conduct.
Against this background, this thesis examines to what extent the FSR fulfills the requirements imposed by the principle of legal certainty, with regard to the requirements, such as clarity and predictability. The thesis applies a doctrinal legal method and the EU legal method, drawing primarily on EU primary and secondary law, relevant case law, Commission practice, and legal doctrine. In doing so, the thesis assesses whether the Regulation, particularly the definition of a ‘foreign subsidy’, the distortion test, the balancing test, as well as the procedural framework, meet the requirements imposed by the principle of legal certainty.
The thesis concludes that, although the FSR addresses an important regulatory gap in the EU legal framework, several of its provisions raise questions under the principle of legal certainty, in particular due to broad concepts and significant Commission discretion. At the same time, given the novelty of the framework and the still limited decisional practice, it is difficult to draw any definitive conclusions. However, while a degree of flexibility may be necessary to effectively address distortive foreign subsidies, greater guidance, transparent assessment criteria, and a more structured interpretative frame-work would strengthen legal certainty for undertakings.}},
author = {{Karlsson, Matilda}},
language = {{eng}},
note = {{Student Paper}},
title = {{Closing a Regulatory Gap - A Critical Assessment of the Foreign Subsidies Regulation in Light of the Principle of Legal Certainty}},
year = {{2026}},
}