The Process of Granting Exclusive Rights in the Light of Treaty Rules on Free Movement

Author:

Szydło Marek

Abstract

After theSporting ExchangeandErnst Engelmannrulings of the European Court of Justice (ECJ) in 2010, it is now entirely clear that the process of granting exclusive rights to undertakings must be conducted in compliance with the Treaty rules on free movement, particularly in accordance with the consequent principles of non-discrimination, equal treatment and transparency, irrespective of whether the right is awarded by means of a public contract or by other legal means (public or private). Thus, even if public authorities wish to exclude competition in a given market due to justified reasons, and are authorized by EU law to do so, they must nonetheless ensure a sufficient degree of competition for that market so as to ensure an undistorted rivalry of the various market operators at the stage of application for that right. It is submitted that the public authorities granting exclusive rights should not complain about the requirements that are imposed upon them by the TFEU rules. After all, by granting exclusive rights within competitive and transparent procedures, the public authorities have an excellent chance to select, from among the many potentially interested operators— including those from other Member States— beneficiaries that will best serve the needs of the relevant community. In turn, if they want to depart from those requirements, they must substantiate the existence of a clearly defined public interest that is capable of outweighing the benefits resulting from a competitive and transparent procedure.

Publisher

Cambridge University Press (CUP)

Subject

Law

Reference165 articles.

1. Id. at para. 47; Id. at para. 53.

2. See Parking Brixen GmbH, supra note 30, para. 50; ANAV, supra note 30, para. 22; Asociación Profesional de Empresas de Reparto y Manipulado de Correspondencia, supra note 37, para. 76.

3. Sierra Buendia , supra note 12, at 287; such an interpretation would consequently mean that the original granting of exclusive rights (as opposed to subsequent granting of exclusive right) is not a “measure” within the meaning of Article 106(1) TFEU (which would have to be effected in accordance with the Treaty), unless the exclusive right is originally granted to a public undertaking, or to an undertaking already granted with a special right. However, that interpretation, giving the Member States almost absolute leeway in creating monopolies (so-called “Absolute Sovereignty Approach”: David Edward & Mark Hoskins, Article 90: Deregulation and EC Law. Reflections Arising From the XVI FIDE Conference, 32 Common Market Law Review 159, 159-160 (1995), is by no means correct.

4. See Bundesanstalt für den Güterfernverkehr, supra note 86, paras. 20-24; Centro Servizi Spediporto Srl, supra note 86, paras. 26-30; Criminal proceedings against Manuele Arduino, supra note 86, paras. 36-43; Federico Cipolla, supra note 55; Stefano Macrino, Claudia Capodarte, supra note 55, paras. 48-52.

5. True, there are some authors who claim that the award of a public contract in accordance with public procurement rules cannot be treated as an exclusive right within the meaning of Article 106(1) TFEU, since such an award is not discretionary (Whish, supra note 18, at 220-221). But as it was already explained, the above-mentioned view cannot be accepted.

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Article 106 [Public and Privileged Undertakings and Services of General Economic Interest];Springer Commentaries on International and European Law;2022

2. Market freedoms and private interactions under EU law;China-EU Law Journal;2019-02-05

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