Cyprus businesses are being urged to participate in a European Commission public consultation on draft guidelines for foreign subsidies that could distort the EU internal market.

The Cyprus Chamber of Commerce and Industry (Keve), which acts as the coordinator of Enterprise Europe Network in Cyprus, announced the consultation, emphasising its importance for companies that receive funding from outside the EU.

“This public consultation is a key opportunity for businesses to shape policies that will influence the future of our market and economy,” said Soti Christou, officer at Keve’s department of services, trade and digitalisation, said.

The consultation follows a process launched in March 2025, during which the European Commission gathered evidence and held targeted discussions with Member States, experts, and consumers on the issues covered by the Guidelines on the Foreign Subsidies Regulation.

The draft guidelines explain how the European Commission identifies and assesses whether a foreign subsidy distorts competition in mergers, acquisitions, public procurement, or ex officio investigations, they added.

The guidelines also clarify how the balancing test is applied, weighing the positive and negative effects of foreign subsidies, they added.

In certain cases, the Commission may require companies to notify it in advance about mergers or foreign financial contributions in public procurement, even if these transactions or contributions are below the usual notification thresholds, they said.

The guidelines are particularly relevant to Cypriot businesses operating in the European market, as they provide clarity on procedures and compliance obligations while helping to ensure a fair competitive framework, they added.

The consultation covers examples of distortions that may be caused by foreign subsidies, assessment criteria, possible corrective measures, investigation procedures, and cooperation with Member States and businesses, they said.

Participation is open to all and runs until September 11, 2025. Companies wishing to submit comments can email [email protected] and [email protected].