We were already discussing the rise of state interventionism before the pandemic. The introduction and expansion of foreign investment regimes globally including US reforms to CFIUS, the French-German call for national champions and important projects of common European interest (IPCEIs) are all testament to this trend.
But the health crisis has added momentum to these developments and provided fertile ground for new forms of intervention.
What does this mean for companies trying to recover from the crisis? Here are the key things that we expect to see more of over the coming months.
“Since the start of the health crisis, foreign investment control regimes across the globe have rapidly become more burdensome. Investors are starting to see the effects, but there is still more to come.”
Christoph Barth
Partner, Düsseldorf
“Companies receiving public aid in Europe shouldn’t be surprised if they end up implementing the EU’s political green agenda.”
Annamaria Mangiaracina
Partner, Brussels
Other topics in our series
Competitor cooperation in times of crisis – A chance to reshape the rules?
15 9月 2020
Throughout the health crisis, businesses have worked together to ensure uninterrupted supply of essentials – often supported by guidance from competition authorities. But as businesses seek to recover from the crisis and adapt to the altered outlook, what role should cooperation play? And what does that mean for the application of the competition rules?
Playing politics with distressed M&A
16 9月 2020
The checks and balances of the merger control process are never more important than in times of crisis. But we are already seeing signs that crisis-driven M&A reviews will face intense political pressure. Meanwhile authorities have been bracing themselves for a surge in failing firm defence claims. Traditionally met with scepticism, will they gain traction through the Covid-19 lens?
Capitalising on a crisis – Competition, market power and exploitation
17 9月 2020
With our increased reliance on technology and concerns around access to essential products, competition policy is tasked with urgently answering fundamental questions about consumer welfare and fairness. In a way that we haven’t seen before, consumer interests are having an immediate impact on political agendas – with major consequences for competition policy and enforcement.
Explore our Summer’s Top Competition Stories content
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Key Contacts
To discuss the contents of this report, please contact one of the global team below
