ECIPE Webinar: Foreign Subsidies in the Tech Sector

Due to geopolitical gambits and renewed interest in activist industrial policy, public subsidies are once again both a policy option and a concern.

The tech industry, which is relatively spared from market distortions, is at the centre of attention. Securing indigenous capabilities in critical or emerging technologies like AI, 5G, automation, or chipset-fabrication is a national objective in East and West. Some of these ambitions could very well tip the level playing field, detrimental to European interests.

As a supplement to existing WTO rules and EU trade instruments, including countervailing duties (on goods), the European Commission has proposed a new regulation to investigate and rectify the negative impact of non-EU subsidies on acquisitions, public procurement and other situations. Given how the ICT industry thrives thanks to scale, it is likely a subject for further scrutiny. Not least given the plans for direct support for the industry in both the US and China.

– When are foreign subsidies distortive or benevolent to the EU Single Market?
– What does competition policy add to existing multilateral rules and EU disciplines? Are we doing enough?
– How can market economies deal with state capitalism: Are some governments trying to fight fire with fire?