ABSTRACT – This paper analyzes the role of the Commission Communication C (2026) 42final of January 9, 2026 (hereinafter: “Guidelines”), which provides guidance on the application of certain provisions of Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market (hereinafter: “FSR”). The analysis focuses on three key aspects: the systematization of the concept of “distortion of the internal market” within the meaning of Article 4 FSR, the structure and scope of the comparative assessment provided for in Article 6 FSR (balancing test), and the strengthening of ex ante control through the Commission’s call-in powers. The paper highlights how the Guidelines help to enhance the predictability of future enforcement practice, while still leaving a significant margin of discretion to the Commission and some critical issues unresolved. The paper concludes by emphasizing the relevance of these issues in view of the revision of the Regulation provided for under Article 52(2) FSR by July 2026.
