On 25 July 2020, the Investment Control Act and a related amendment to the Foreign Trade Act 2011 entered into force. The legislation established a new investment review mechanism and abrogated the mechanism that had been in place since 2011. The new regime lowers the screening threshold for acquisitions made by foreign investors (other than EU, EEA and Swiss nationals) in "highly sensitive sectors" from 25% to 10% of voting rights in the target entity. The definition of "highly sensitive sectors" was expanded to include critical infrastructure in food, research institutions and finance. The lower screening threshold applies temporarily to acquisitions relating to "research and development in the fields of drugs, vaccines, medical devices, and personal protective equipment" until 31 December 2022. The changes also address international cooperation in line with Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union.
On 30 December 2022, an Amendment to the Investment Control Act was published in the Federal Gazette. The amendment extends the application of the temporary regime of lower screening thresholds for acquisitions by foreign investors relating to "research and development in the fields of drugs, vaccines, medical devices, and personal protective equipment" until 31 December 2023; without the amendment, the lower trigger thresholds for acquisitions in this sector would have lapsed after 31 December 2022 as foreseen in the Act before the amendment.
"Motion [...]
The National Council has decided: The Federal Law on the Control of Foreign Direct Investments (Investment Control Act - InvKG), BGBI. No. 87/2020 is amended as follows: In Section 29 Paragraph 3, the year "2022" is replaced by "2023".
[...]
With this change, the regulation contained in the master version, according to which Part 1 Z 6 of the appendix was published on 31. December 2022, changed. This ensures that direct investments in research and development in the areas of pharmaceuticals, vaccines, medical devices and personal protective equipment are subject to the previous approval requirements until December 31, 2023. The provision in Annex Part 1 Z 6 regulates that direct investments in research and development in the areas of pharmaceuticals, vaccines, medical devices and personal protective equipment are subject to approval if they achieve a minimum share of voting rights of 10%, 25% and 50% in the target company. The COVID-19 crisis in particular, but also the energy crisis and the Russian invasion of Ukraine, have highlighted the need to protect security of supply in particularly sensitive areas and illustrate the relevance of maintaining such a regulation.[...]" (Amendment to the Investment Control Act, Federal Law Gazette I No. 231/2022, 30 December 2022 [google translation])
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"Chapter 8 [...]
Entry into force and transitional provisions. Section 29. [...]
(3) Part 1 Item 6 of the Annex shall cease to be in force on 31 December 2022.[...]" (Investment Control Act (BGBl. I Nr. 87/2020), entry into force 25 July 2020, §§ 29 [unofficial translation])
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"Section 1. 
For the purposes of this Federal Act:
1. "Austrian undertaking": an undertaking within the meaning of Section 1 Para 2 of the Austrian Corporate Code (UGB), German Imperial Law Gazette p. 219/1897, having its registered office or headquarters in Austria;
2. Foreign person:
a) a natural person without Union citizenship or citizenship of an European Economic Area state or Switzerland or
b) a legal entity with its registered office or headquarters outside the EU, the European Economic Area, and Switzerland;
3. "Direct investment": the direct or indirect acquisition of
a) an Austrian undertaking or b) voting right shares in such an undertaking or c) a controlling interest in such an undertaking d) substantial assets of such an undertaking;
4. "Acquiring person": a natural person or legal entity carrying out a process pursuant to Item 3;
5. "Target undertaking": an Austrian undertaking within the meaning of Item 1 in which a direct investment has been or is to be made;
6. "Foreign direct investment": a process within the meaning of Item 3 in which at least one of the acquiring persons is a foreign person;
7. "Acquisition of a controlling interest": the possibility of exercising a decisive influence on the activity of the target undertaking, either individually or jointly, through rights, contracts or other means, taking into account all circumstances, even if the minimum share of voting rights pursuant to Sections 4 and 5 is not reached; 
[...]
Authorisation obligation
Section 2. 
(1) A foreign direct investment shall require the approval of the Federal Minister for Digital and Economic Affairs, hereinafter referred to as the "leading responsible Member of the Federal Government", if
1. the target undertaking is active in one of the areas listed in the Annex and
2. Union and international legal provisions do not preclude an obligation to obtain authorisation and
3. by direct investment
a) within the meaning of Section 1 Item 3 lit. b, a minimum share of the voting rights pursuant to Sections 4 and 5 is reached or exceeded,
b) a controlling interest within the meaning of Section 1 Item 3 lit. c is attained irrespective of specific shares of voting rights or
c) a controlling interest on substantial assets of the undertaking within the meaning of Section 1 Item 3 lit. d is acquired.
(2) Foreign direct investments in which the target undertaking is a micro enterprise, including start-up enterprises, with fewer than ten employees and an annual turnover or an annual balance sheet total of less than two million Euros shall not be subject to any authorisation requirement.
(3) This Federal Act shall not affect the provisions of the land transfer laws of the federal provinces.
Threat to security or public order
Section 3. 
(1) When assessing whether a foreign direct investment may lead to a threat to security or public order, including crisis management and services of general interest within the meaning of Article 52 and Article 65 TFEU, its effects in the areas listed in the Annex shall be examined.
(2) Moreover, when assessing a possible threat within the meaning of Para 1, particular account shall be taken of
1. whether an acquiring person is controlled directly or indirectly by the government, including government agencies or the armed forces, of a third country, inter alia by means of ownership structure or in the form of substantial financial resources,
2. whether an acquiring person, or a natural person who holds a senior position in an acquiring legal entity, is or has been involved in activities that have or have had an impact on security or public order in another EU Member State, and
3. whether there is a significant risk that an acquiring person, or a natural person who holds a management position in an acquiring legal entity, is or has been involved in illegal or criminal activities.
Minimum share of voting rights
Section 4. 
The relevant shares of voting rights within the meaning of Section 2 Para 1 Item 3 lit. a are:
1. if the target company carries out an activity in one of the areas listed in Part 1 of the Annex: 10%, 25% and 50% and
2. in all other cases: 25% and 50%.
[...]
Annex
Part 1 
Especially sensitive areas to which the voting rights shares apply pursuant to Section 4 Item 1 (exhaustive list)
1. defence equipment and technologies
2. operation of critical energy infrastructure
3. operation of critical digital infrastructure, in particular 5G infrastructure
4. water
5. operating systems guaranteeing the data sovereignty of the Republic of Austria
6. research and development in the fields of pharmaceuticals, vaccines, medical devices and personal protective equipment
Part 2
Other areas in which a threat to security or public order including crisis management and services of general interest within the meaning of Articles 52 and 65 TFEU may arise
1. critical infrastructure (institutions, systems, facilities, processes, networks or parts thereof); these include in particular:
1.1. energy
1.2. information technology
1.3. traffic and transport
1.4. health
1.5. food
1.6. telecommunications
1.7. data processing or storage
1.8. defence
1.9. constitutional institutions
1.10. finance
1.11. research institutions
1.12. social and distribution systems
 1.13 chemical industry
1.14. investment in land and buildings essential for the use of the infrastructures referred to in points 1.1 to 1.13
2. critical technologies and dual-use goods as defined in Article 2 Para 1 of Council Regulation (EC) No. 428/2009, including
2.1. artificial intelligence
2.2. robotics
2.3. semiconductors
2.4. cyber security
2.5. defence technologies
2.6. quantum and nuclear technologies
2.7. nanotechnologies
2.8. biotechnologies
3. security of the supply of critical resources, including
3.1. energy supply
3.2. supply of raw materials
3.3. food supply
 3.4.supply of medicines and vaccines, medical devices and personal protective equipment, including research and development in these areas
4. access to sensitive information, including personal data, or the ability to control such information
5. freedom and plurality of the media.
"Critical" are infrastructures within the meaning of Item 1, technologies within the meaning of Item 2 and resources within the meaning of Item 3 that are of essential importance for the maintenance of important social functions because their disruption, destruction, failure or loss would have serious effects on the health, safety or economic and social well-being of the population or the effective functioning of government institutions." (Investment Control Act (BGBl. I Nr. 87/2020), entry into force 25 July 2020, §§ 1-4 and annex [unofficial translation])
Investment Control Act (BGBl. I Nr. 87/2020), entry into force 25 July 2020, §§ 1-4, 29 and annex
Amendment to the Investment Control Act, Federal Law Gazette I No. 231/2022, 30 December 2022
[<a href="https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20011250">Act</a>],[<a href="https://trade.ec.europa.eu/doclib/docs/2020/september/tradoc_158955.pdf">Translation</a>],[<a href="https://www.parlament.gv.at/dokument/XXVII/A/3010/imfname_1483304.pdf">Amendment</a>]