DOI: https://doi.org/10.21564/2414-990x.144.154611

Horizontal aims in public procurements as an additional reason for assessment of conformity with state aid rules

Веста Костянтинівна Малолітнева, Олена Едуардівна Ліллемяе

Abstract


The present article is devoted to the problems of horizontal aims implementation in public procurement, in particular in the field of environmental and social protection, within the framework of state aid rules. The authors give special consideration to the problems of applying a “purchaser’s test on market conditions” to determine whether there is an unjustified economic advantage in procurement with horizontal goals, as it is generally assumed that in such procurement contracting authorities pay a higher price that it would have had to pay without the use of the horizontal criteria. Such overcompensation could put the economic operators at a competitive advantage. For the purpose of defining whether public procurement with horizontal aim involves state aid the article dwells on the influence of the distinction between public procurement with horizontal policy which is related to the subject matter of the awarded contract and which is not. The study indicates that public procurement with horizontal measure which does not relate to the subject matter will probably entails the obligation of contracting authorities to assess if such procurement is in conformity with state aid rules. The article provides an in-depth analysis of the European Union (EU) experience and cases of the Court of Justice of the EU in determining the ratio of public procurement and state aid, and the decisions whether public procurement with horizontal objectives constitutes state aid which distorts competition. The authors elaborate recommendations for contracting authorities and the Antimonopoly Committee of Ukraine how to determine whether procurement of horizontal objectives constitutes state aid that may distort or threaten to distort economic competition.


Keywords


економічна конкуренція; публічні закупівлі; державна допомога; горизон-тальні цілі; економічна перевага; Угода про асоціацію з ЄС

References


Arrowsmith, S. (2010). Horizontal policies in public procurement: a taxonomy. Journal of public procurement, Vol. 10, issue 2, 149–186.

Pro strategiiu reformuvannia systemy publichnykh zakupivel (“dorozniu kartu”): Rozpori-adzenia KMU vid 24.02.2016 r. № 175-r. (2016). Uriadovuy kurer, 62 [in Ukrainian].

Petersen, C.F. (2018). Award of public contracts as a means to conferring state aid. A legal analysis of the interface between public procurement law and state aid law. PhD Series. Doctoral School of Business and Management. Copenhagen Business School, 312 p. URL: https://openarchive. cbs.dk/bitstream/handle/10398/9614/Cecilie%20Fanøe%20Petersen.pdf?sequence=1.

Martinic, S., Kozina, A. (2016). “Europe 2020” and the EU public procurement and state aid rules: good intentions that pave a road to hell? Croatian Yearbook of European Law and Policy, Vol. 12, 207–249.

On aid measure which the United Kingdom is planning to implement for support to the Hinkley Point C nuclear power station: Commission Decision (EU) 2015/658. 2014. URL: https://publications.europa.eu/en/publication-detail/-/publication/60110181-ed6e-11e4-892c-01aa75ed71a1/language-en.

Graells, A. Public procurement and state aid: reopening the debate? URL: http://papers.ssrn. com/sol3/papers.cfm?abstract_id=2037768.

London Underground public private partnership: Commission decision № 264/2002 of 2 December 2002. URL: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_ N264_2002.

Nicolaides, P. Public Procurement and State Aid. State Aid Hub.eu. URL: http://stateaidhub. eu/blogs/stateaiduncovered/post/9299.

Bartosch, A. (2002). The Relationship Between Public Procurement and State Aid Surveil-lance: The Toughest Standard Applies? Common market law review, Vol. 39, № 3, 551–576.

Büsching, K., Wiese, T., Both, C. (2012). European State Aid Law: a Compendium for Prac-tical Application, 83 p.

Koenig, C., Wilden, B. (2018). Re-Communalisation: The Impact of the In-House Privilige and National Public Pricing Law on European State Aid Law. EStAL, 2, 264–273.

Joined Cases T-129/95, T-2/96 and T-97/96, Neue Maxhütte Stahlwerke GmbH and Lech-Stahlwerke GmbH v Commission of the European Communities [1999] ECR II-00017. URL: https:// eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:61995TJ0129.

Case C-303/88, Italian Republic v Commission of the European Communities [1999]. URL: https://eur-lex.europa.eu/resource.html?uri=cellar:646add17-002b-4472-962a-566ca01ee064.0002.03/DOC_2&format=PDF.

Priess, H., Merveldt, M. (2009). The impact of the EC state aid rules on horizontal policies in public procurement. Social and Environmental Policies in EC Procurement Law: New Directives and New Directions / S. Arrowsmith, P. Kunzlik (Eds.). Cambridge, UK: Cambridge University Press, 249–270.

Case C-513/99, Concordia Bus Finland: [2002] E.C.R. I-07213. URL: http://curia.europa.eu/ juris/liste.jsf?language=en&num=C-513/99.

Case C-448/01, EVN AG and Wienstrom GmbH v Republic Austria [2003] E.C.R. I-14527.URL: http://curia.europa.eu/juris/showPdf.jsf?docid=71234&doclang=EN.

Case C-21/88, Du Pont de Nemours Italiana SpA v Unità sanitaria locale Nº 2 di Carrara [1990] E.C.R. I-00889. URL: https://eur-lex.europa.eu/legal-content/HR/TXT/?uri=CELEX:61988CJ0021.

Case C-379/98, PreussenElektra AG v Schleswag AG [2001] ECR I-2099. URL: http://curia. europa.eu/juris/liste.jsf?language=en&num=C-379/98.

Opinion of Advocate General Lenz. Du Pont de Nemours Italiana SpA v Unità sanitaria locale Nº 2 di Carrara. 1989. URL: https://eur-lex.europa.eu/legal-content/EN/ TXT/?uri=CELEX%3A61988CC0021.


GOST Style Citations


  1. Arrowsmith S. Horizontal policies in public procurement: a taxonomy. Journal of public procurement. 2010. Vol. 10. Issue 2. P. 149–186.
  2. Про Стратегію реформування системи публічних закупівель («дорожню карту») : розпо-рядження КМУ № 175-р від 24.02.2016 р. Урядовий кур’єр. 2016. № 62.
  3. Petersen C. F. Award of public contracts as a means to conferring state aid. A legal analysis of the interface between public procurement law and state aid law. PhD Series. Doctoral School of Business and Management. Copenhagen Business School. 2018. 312 p. URL: https://openarchive. cbs.dk/bitstream/handle/10398/9614/Cecilie%20Fanøe%20Petersen.pdf?sequence=1 (last accessed: 08.12.2018).
  4. Martinic S., Kozina A. “Europe 2020” and the EU public procurement and state aid rules: good intentions that pave a road to hell? Croatian Yearbook of European Law and Policy. 2016. Vol. 12. P. 207–249.
  5. On aid measure which the United Kingdom is planning to implement for support to the Hinkley Point C nuclear power station: Commission Decision (EU) 2015/658. 2014. URL: https://publications.europa.eu/en/publication-detail/-/publication/60110181-ed6e-11e4-892c-01aa75ed71a1/language-en (last accessed: 12.11.2018).
  6. Graells A. Public procurement and state aid: reopening the debate? URL: http://papers.ssrn. com/sol3/papers.cfm?abstract_id=2037768 (last accessed: 08.12.2018).
  7. London Underground public private partnership: Commission decision № 264/2002 of 2 December 2002. URL: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_ N264_2002 (last accessed: 03.12.2018).
  8. Nicolaides P. Public Procurement and State Aid. State Aid Hub.eu. URL: http://stateaidhub. eu/blogs/stateaiduncovered/post/9299 (last accessed: 03.12.2018).
  9. Bartosch A. The Relationship Between Public Procurement and State Aid Surveillance: The Toughest Standard Applies? Common market law review. 2002. Vol. 39. № 3. P. 551–576.
  10. Büsching K., Wiese T., Both C. European State Aid Law: a Compendium for Practical Appli-cation. 2012. 83 p.
  11. Koenig C., Wilden B. Re-Communalisation: The Impact of the In-House Privilige and National Public Pricing Law on European State Aid Law. EStAL. 2018. № 2. P. 264–273.
  12. Joined Cases T-129/95, T-2/96 and T-97/96, Neue Maxhütte Stahlwerke GmbH and Lech-Stahlwerke GmbH v Commission of the European Communities [1999] ECR II-00017. URL: https:// eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:61995TJ0129 (last accessed: 08.12.2018).
  13. Case C-303/88, Italian Republic v Commission of the European Communitie [1999]. URL: https://eur-lex.europa.eu/resource.html?uri=cellar:646add17-002b-4472-962a-566ca01ee064.0002.03/DOC_2&format=PDF (last accessed: 08.12.2018).
  14. Priess H., Merveldt M. The impact of the EC state aid rules on horizontal policies in public procurement. Social and Environmental Policies in EC Procurement Law: New Directives and New Directions: monograph / eds. S. Arrowsmith, P. Kunzlik. Cambridge, UK: Cambridge University Press, 2009. P. 249–270.
  15. Case C-513/99, Concordia Bus Finland: [2002] E.C.R. I-07213. URL: http://curia.europa.eu/ juris/liste.jsf?language=en&num=C-513/99 (last accessed: 25.10.2018).
  16. Case C-448/01, EVN AG and Wienstrom GmbH v Republic Austria [2003] E.C.R. I-14527.URL: http://curia.europa.eu/juris/showPdf.jsf?docid=71234&doclang=EN (last accessed: 17.10.2018).
  17. Case C-21/88, Du Pont de Nemours Italiana SpA v Unità sanitaria locale Nº 2 di Carrara [1990] E.C.R. I-00889. URL: https://eur-lex.europa.eu/legal-content/HR/TXT/?uri=CELEX:61988CJ0021 (last accessed: 10.10.2018).
  18. Case C-379/98, PreussenElektra AG v Schleswag AG [2001] ECR I-2099. URL: http://curia. europa.eu/juris/liste.jsf?language=en&num=C-379/98 (last accessed: 18.10.2018).
  19. Opinion of Advocate General Lenz. Du Pont de Nemours Italiana SpA v Unità sanitaria locale Nº 2 di Carrara. 1989. URL: https://eur-lex.europa.eu/legal-content/EN/ TXT/?uri=CELEX%3A61988CC0021 (last accessed: 10.10.2018).


Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM




Copyright (c) 2019 Веста Костянтинівна Малолітнева, Олена Едуардівна Ліллемяе

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN 2224-9281