AMSTERDAM – 21 June 2023 – Greenberg Traurig, LLP Amsterdam Local Partner Robert Hardy authored a practice note covering the legal regime for foreign investment review in the Netherlands. The article discusses the requirements for protecting national interests in certain sectors and provides an overview of the Dutch Investment Review Act and the Dutch Telecommunications Act. The article was originally published in Thomson Reuters Practical Law.
Until 1 June 2023, there was no comprehensive, overarching framework regarding foreign investment review in the Netherlands; foreign investment review laws in place in the Netherlands were applied to specific sectors only. The notification requirements resulting from these laws typically apply irrespective of the nationality of the acquirer, and there is usually no exemption for acquirers based in the Netherlands or the European Union. Outside of European Union and Dutch general merger control rules – which are not discussed in this note – the main laws currently in force in the Netherlands containing foreign investment review-related provisions are:
- Electricity Act 1998
- Gas Act
- Financial Supervisory Act
- Gambling Act
- Healthcare Market Regulation Act
- Mining Act
- Telecommunications Act
These laws continue to apply, and on 1 June 2023 the Dutch Investment Review Act covering investments in vital providers and sensitive technology in the Netherlands came into force.
The note focuses on the following legislation:
- Regulation 2019/452/EU establishes a framework for the screening of foreign direct investments into the EU (FDI Regulation) (REGULATION (EU) 2019/452 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL).
- The Implementation Act for Regulation 2019/452/EU (see Dutch implementation of the FDI Regulation).
- The Dutch Investment Review Act (Wet veiligheidstoets investeringen, fusies en overnames), including the Dutch Investment Review Decree (Besluit veiligheidstoets investeringen, fusies en overnames), the Dutch Scope of Application Sensitively Technology Decree (Besluit toepassingsbereik sensitieve technologie), and the Dutch Investment Review Regulation (Regeling veiligheidstoets investeringen, fusies en overnames).
- The Dutch Telecommunications Act, as amended by the Dutch Act on undesired control of telecommunications (see Telecommunication Act).
- In line with the terminology adopted in the FDI Regulation, this note uses the term “foreign direct investment” (FDI) to denote foreign investment review-related notification requirements in the Netherlands.
Read the full article about Foreign Investment in the Netherlands at this link.
This article is reproduced with the permission of the publishers. For more information, please visit www.practicallaw.com.