Paper on centralisation of procurement and competition law

Ignacio Herrera Anchustegui, research fellow at the Faculty of Law, UiB, and BECCLE, and Albert Sánchez Graells, senior lecturer in commercial law, University of Leicester, have just completed a working paper on the new rules on centralisation and occasional procurement under articles 37-39 of Directive 2014/24.

The paper assesses the risks, rationale and justification for the rules on centralisation and aggregation of public procurement in Directive 2014/24. The paper is entitled “Impact of public procurement aggregation on competition. Risks, rationale and justification for the rules in Directive 2014/24” and is now part of the University of Leicester School of Law Research Paper Series.

The paper explores the justifications advanced for the aggregation of purchasing and the countervailing risks it generates. In both cases, it focusses in economic and administrative aspects. It then proceeds to a summary overview of the new rules for the aggregation of public procurement in Directive 2014/24, and emphasised how the Directive is expressly recognising possibilities that clearly exceed the more modest approach in Directive 2004/18. Moving on, it then focusses on the potential justification for certain activities now permitted by the 2014 rules, and engages in a critical assessment of their competitive impact. The paper briefly highlights the far-reaching and not necessarily positive implications that a maximisation of the centralisation and aggregation possibilities under Directive 2014/24 could have, and proposes that strict competition law enforcement will be necessary to avoid undesired consequences. Some suggestions for further research are provided by way of conclusions.

The full paper is available for download on SSRN. Its full citation is:

Sánchez Graells, Albert and Herrera Anchustegui, Ignacio, Impact of Public Procurement Aggregation on Competition. Risks, Rationale and Justification for the Rules in Directive 2014/24 (December 5, 2014). University of Leicester School of Law Research Paper No. 14-35. Available at SSRN: http://ssrn.com/abstract=2534496.

This post was originally posted on Albert Sánchez Graells’ blog “How to Crack a Nut“, and has been reposted with Graells’ consent.