The Opinion covers the question whether a subsidiary that is entitled to provide works, services or supplies to its parent without the need for an EU tender process (1) has to follow the EU procurement rules for its own purchases.
We have always said that this is the correct legal position, but there is now support for this view from the Advocate General (2). The case in which the Advocate General issued this Opinion concerned a wholly owned subsidiary of the state railway company that manufactured and maintained railway rolling stock for that company.
Although Opinions of the Advocate General are not technically law, they are strongly persuasive and, more often than not, are followed by the European Court of Justice. We are, therefore, expecting this Opinion to be followed when the case finally comes before the European Court.
Assuming the European Court follows the Advocate General’s opinion, any subsidiary of a registered provider, local authority or other contracting authority that relies on the exemption for the supply of works or services to its parent company will need to follow the EU procurement rules for its own purchases.
(1) Under Regulation 12 of the Public Contracts Regulations 2015, which enacted the Teckal case.
(2) In the case of LitSpecMet UAB v Vilniaus lokomotyvu remonto depas UAB.
If you would like more information about the topics discussed, please contact Andrew Millross. If you would like more information about the work we do at Anthony Collins Solicitors, please visit our website.
Latest news
New code puts complaint handling in the spotlight
he updated Housing Ombudsman’s (HO) Complaint Handling Code (the New Code) will become a statutory requirement on 1 April 2024 and will bring a significant step change for registered providers (RPs).
Monday 25 March 2024
Read moreAnthony Collins appoints returning partner as new head of funding
Specialist law firm Anthony Collins (AC) has appointed a new head of funding, returning partner, Jon Coane. Jon brings with him over 25 years of experience as a social impact […]
Wednesday 13 March 2024
Read moreLatest webinars and podcasts
PODCAST: 12.07% holiday accrual is back… But not for everyone!
In the podcast we will outline the new Working Time Regulations legislation in detail, noting when the provisions coming into force, whilst also providing practical examples and guidance for employers across all sectors.
Friday 1 December 2023
Read moreRenters Reform Bill webinar – June 2023
The Renters Reform Bill proposes a seismic change to housing management practices, abolishing assured shorthold tenancies and 21 notices entirely and making changes relating to rent increases, pets, possession grounds and more.
Friday 18 August 2023
Read more