Procurement and competition law

Companies, governmental and semi-governmental organisations are bound by many European laws and regulations, among other things in the area of tendering and competition. Calls for tender should create competition to enable government money to be spent and used in the best possible manner.

Procurement law encompasses all of the rules that apply to procurement procedures in the market through tendered services. Companies that consequently bid for a tender must compete with each other. Naturally, all companies should have equal chances when competing for the contract. This means that the contracting authority gives consideration at all times to the principles of transparency, objectivity, equality and non-discrimination.

Competition law relates to the behaviour of the companies and prohibits companies from acting in ways that inhibit competition. This is important in procurement law, since calls for tender should guarantee that competition is not restricted by practices that limit competition. For instance, a tenderer may be excluded from tenders if he has acted against the competition laws. Therefore, there is an important relationship between procurement law and competition law.