According to the commission, there are “indications” that the audited company is subject to the regulation on foreign subsidies may have received subsidies that could distort the internal market – can be read in the board’s press release.
The EU officials were accompanied during the inspections by the staff of the national competition authorities of the EU member states. Unannounced inspections are preliminary investigations of suspected distorting foreign subsidies. The initiation of investigations does not mean that the company in question has indeed received foreign aid that distorts the internal market, nor does it affect the outcome of the investigation. If the European Commission finds sufficient evidence that the given company received illegal foreign subsidies, it will initiate a more thorough investigation, the board said.
In its press release, the European Commission did not name the company or the country where the company is headquartered. However, the representation of the Chinese Chamber of Commerce in the European Union announced on Tuesday: it was informed that a Chinese company’s offices in Poland and the Netherlands were raided and authorities seized IT equipment and employees’ mobile phones and demanded access to data.
“The EU’s measures send a negative message not only to Chinese companies, but also to all foreign companies doing business in the EU. The unannounced inspection on April 23 undermines the business environment for foreign companies within the EU,” says the Chinese chamber announcement.
Pursuant to the EU regulation on foreign subsidies that entered into force in 2023, companies are obliged to announce their public procurement tenders in the EU if the estimated value of the contract exceeds 250 million euros and if they have received foreign financial contributions of at least 4 million euros in the three years prior to the announcement .
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Tags: European Commission raided European premises Chinese company
