The European Semiconductor Industry Association (Esia) welcomes the measures the European Commission is considering to curb foreign state-backed companies’ operations on the European internal market. “Countries often provide disproportionate foreign subsidies to companies that the financial market wouldn’t typically support, as a result of this often building up their technological basis to the detriment of the future competitiveness of the EU,” the industry body states in a press release.
The Commission Wednesday put forward a number of proposals to address distortive effects caused by foreign subsidies: a general market scrutiny instrument, complemented by specific ones concerning acquisitions of EU companies and participation in public procurement procedures. The white paper is now open for public consultation until 23 September. In light of the input received, the Commission will present appropriate legislative proposals.