On May 5, 2021, the European Commission (“EC”) proposed a new draft regulation that, if adopted, would introduce sweeping measures aimed at controlling the impact of foreign subsidies on the EU single market (“Proposed Regulation”).1 The Proposed Regulation reflects the EU’s policy priority to pursue an “open strategic autonomy” and fits into the EU Industrial Strategy, updated on the same date.2 The Proposed Regulation follows the June 2020 White Paper3 on foreign subsidies and a public consultation process. It (i) introduces a merger control regime for vetting transactions affected by foreign subsidies; (ii) grants the EC broad powers to investigate and impose remedies concerning foreign subsidies that distort competition in the EU; and (iii) allows the EC to suspend or block public procurement in the EU.