The subsidy control regime is a set of regulations that governs how government financial support to businesses is administered to ensure fair competition. These controls are pivotal in maintaining a level playing field in the market.
Subsidy definition and scope. It is essential to understand what constitutes a subsidy. This includes any form of public support — such as grants, loans, tax breaks or guarantees — that offers an economic advantage to a business or sector.
Compliance with rules and guidelines. The regime sets out specific rules and guidelines that must be followed when subsidies are granted. These include transparency requirements, limits on the amount of aid, and conditions that ensure subsidies serve a public interest without unduly distorting competition.