Introduction: New FDI regimes with divergent approaches In February 2024, Bulgaria adopted a new FDI screening regime, while Ireland published guidance on its new FDI regime, which are expected to enter into force in June and September 2024, respectively. The two differing approaches of the two new regimes illustrate the inconsistency of substantive and procedural FDI rules across the EU. While the Bulgarian FDI regime employs a “catch-all” approach with low thresholds and broad powers, the Irish FDI regime provides more reasonable thresholds and detailed guidance well in advance of it coming ..read more

On 18 April 2024, the UK Government published its response to the call for evidence that it launched in December 2023 asking for stakeholder feedback on a number of areas of potential change to the UK’s National Security and Investment Act (“NSI Act“). The call for evidence, launched nearly two years after the UK’s first, standalone foreign investment review regime came into force (see here), sought views on a broad range of questions concerning both the scope and process of the NSI Act. It signaled an intent from the UK Government to make the existing regime more pragmatic for market particip ..read more

On April 11, 2024, the U.S. Treasury Department’s Office of Investment Security announced a proposed rule that would modify regulations governing the Committee on Foreign Investment in the United States (“CFIUS”). The proposed rule represents the first substantive update to CFIUS’ mitigation and enforcement provisions since implementation of the Foreign Investment Risk Review Modernization Act of 2018, 50 U.S.C. § 4564 and follows CFIUS’ Enforcement Penalty Guidelines issued on October 22, 2022. Our previous blog post on this topic is available here. The proposed rule would expand CFIUS fact-f ..read more

In brief The Government of Canada recently passed Bill C-34, the National Security Review of Investment Modernization Act (“Bill C-34“), marking a turning point in the review of foreign investment in Canada. Bill C-34 enhances the Canadian government’s national security review powers under the Investment Canada Act (“ICA“) and introduces mandatory pre-closing filings for certain investments. The amendments are intended to address evolving threats arising from foreign investment and to ensure Canada’s economic security and prosperity. Bill C-34 will come into effect on dates to be set ..read more

In brief Canada has announced two complementary policies that will subject foreign investment in the interactive digital media (“IDM“) sector to enhanced scrutiny under the Investment Canada Act (“ICA“). IDM relates to digital content and/or digital environments where users can participate or collaborate, including certain mobile apps, video games, and virtual reality platforms. The Minister of Innovation, Science and Industry’s policy is intended to stop hostile state-sponsored or state-influenced actors (“SOEs“) from leveraging Canada’s IDM sector to spread disinformation and ..read more

The Commerce Department has published an Advance Notice of Proposed Rulemaking seeking comments on a proposal to restrict the use of information and communication technologies and services (ICTS) developed or supplied by foreign adversaries (e.g., China) in connected vehicles (CVs), an initiative that could impact virtually all auto makers and their suppliers selling into the US market. To inform its rulemaking, the Commerce Department’s Bureau of Industry and Security (BIS) has requested public comments by April 30, 2024. BIS has initiated this rulemaking based on President Trump’s 2019 Execu ..read more

On February 28, President Biden issued Executive Order 14117 (the EO) directing the US Attorney General and other agencies to promulgate regulations that restrict and, in some cases, prohibit transactions that might involve the sharing of sensitive personal data and government-related data with “countries of concern” (currently China, including Hong Kong and Macau, Russia, Iran, North Korea, Cuba, and Venezuela). In tandem, the Department of Justice (DoJ) issued an Advance Notice of Proposed Rulemaking (ANPRM) to provide information regarding the forthcoming DoJ regulations and request comment ..read more

On February 1, 2024, the U.S. Court of Appeals for the Eleventh Circuit granted a limited preliminary injunction enjoining enforcement against two Chinese national plaintiffs of a new Florida law (SB-264) that restricts certain foreign persons from owning real property on grounds that the plaintiffs have a “substantial likelihood” of prevailing in their argument that federal foreign investment regulation pre-empts the state law. This litigation over the 2023 Florida law, which comes at a time of increasing international investment into U.S. agricultural land and as Congress’ Select Committee o ..read more

The start of 2024 has seen the European Commission announce a new EU-wide legislative proposal, and the Italian and UK governments both issued two noteworthy enforcement decisions. In the EU, the European Commission published a proposal to update the 2019 EU Foreign Direct Investment Screening Regulation. The aim of the reform is to enable a clearer and more open line of communication between a national FDI authority and companies that have submitted an FDI filing. Companies will be able to rely on new harmonized procedural rights, including duties for Member States to (i) ensure judicial revi ..read more

In brief Modernization of Canadian competition law and foreign investment review is well underway. Recent and further proposed legislative amendments will impact how dealmakers assess substantial and procedural regulatory risk for mergers. This update summarizes the recent legislative amendments to the Competition Act (“Act”) that came into effect on 15 December 2023 and proposed legislative amendments to the Act and Investment Canada Act (“ICA”). Dealmakers should be aware of these amendments as they plan mergers involving Canadian businesses in 2024. In more detail Merger review in Canada is ..read more