Belgian Court Enforces FSR, Halting €750M Concession
In one of the first major enforcement actions under the EU's Foreign Subsidies Regulation, a Belgian court suspended the award of a €750 million casino concession due to the winning bidder's non-compliance.
A Belgian court has suspended the award of a €750 million casino concession, marking one of the first significant enforcement actions under the EU's Foreign Subsidies Regulation (FSR). The decision was reportedly based on the winning bidder's failure to comply with the FSR's mandatory disclosure requirements for foreign financial contributions in large public procurement procedures.
This ruling is a critical development for global businesses operating in the European Union. It demonstrates that national authorities are actively enforcing the FSR and are willing to halt major, high-value contracts for procedural non-compliance. The case underscores the serious risks for companies that receive financial support from non-EU governments, highlighting the importance of meticulously tracking such contributions and adhering to the regulation's reporting obligations. Sophisticated counsel should advise clients to immediately review and strengthen their internal FSR compliance programs. The market will be closely watching for further enforcement actions at the national level and any responsive guidance from the European Commission.