Foreign direct investment (FDI) control and foreign subsidies regulation (FSR) are two procedural steps that foreign companies looking to acquire a European undertaking must increasingly consider.
In an article for Concurrences, RBB's Etienne Pfister examines the role that economic analysis can play in these procedures. The article shows that FDI control does share several common points with merger control, where economic analysis is routinely used. For the FSR, economic analysis will be needed in the three steps of the FSR, namely (i) the identification of a foreign subsidy; (ii) the existence of a distortion to competition; and (iii) the identification of the net effect of the foreign subsidy.
Subscribers to Concurrences can read the full article here.