Public law control of Foreign Subsidies in the internal market of the European Union

The article examines the legal mechanism established by Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market (Foreign Subsidies Regulation, FSR). It considers the concept of a foreign subsidy, the principal procedures under the FSR, the powers of the European Commission, the criteria for establishing a distortion of the internal market and the first enforcement practice. The purpose of the study is to determine the legal nature of the FSR mechanism and to identify the limits of the European Commission's supervisory powers in relation to undertakings operating in the EU internal market. The article argues that the FSR constitutes an autonomous instrument of public-law regulation in which the Commission's measures are directed primarily at the undertaking using an advantage obtained through support from a third country. This raises the question of the permissible limits of public intervention in the economic activity of undertakings. Further application of the Regulation requires proportionate information obligations, greater legal certainty, adequately reasoned decisions and effective procedural safeguards.