Next-level Screening? The Case of Outbound Investment Screening

Over the past couple of years, inbound investment screening has become a standard legal and economic instrument in many Western countries. In light of geopolitical challenges, the United States is currently debating the introduction of an outbound screening mechanism that would subject certain outbound investments by US companies to governmental scrutiny. In addition, the European Commission has announced that it intends to consider whether outbound investments by European companies need to be regulated more thoroughly. This article provides an overview of these developments and analyzes the draft legislation that is currently being debated in the United States. Furthermore, it examines the feasibility of outbound investment screening under European and German law and makes an initial proposal for such a law in the European setting.