After a series of investigations into foreign subsidies in the award of public procurement contracts, the European Commission is now tackling a takeover. Another novelty is that this new case doesn’t refer to Chinese subsidies, but to aid provided by the United Arab Emirates (UAE).
The Commission received notification in April 2024 of the takeover of Czech-based telecommunications operator PFF by the UAE-controlled operator e&. The information provided in the notification suggests that e& has received Emirati support which distorts competition in the European market. This is why the European Commission opened an in-depth investigation on Monday 10 June to examine the facts.
The company benefits from unlimited guarantees from the UAE and loans from state-controlled banks. These contributions fall within the scope of the Foreign Subsidies Regulation. This is why an in-depth investigation has been opened until 15 October 2024, the date on which the Commission is due to take a decision.
If the distortion of competition is confirmed, the Commission may ask the companies concerned to find a way to restore fair competition conditions, or even to prohibit the takeover. (Original version in French by Léa Marchal)