The award, by a public authority to a service provider, of the management of a public pay car park, in consideration for which that provider is remunerated by sums paid by third parties for the use of that car park, is a public service concession to which Directive 92/50 relating to the coordination of procedures for the award of public service contracts does not apply.
Public authorities concluding public service concession contracts are bound to comply with the fundamental rules of the EC Treaty, in general, particularly Articles 43 EC and 49 EC, and the principle of non-discrimination on the ground of nationality set out in Article 12 EC, which are specific expressions of the general principle of equal treatment. The principles of equal treatment and non-discrimination on grounds of nationality imply, in particular, a duty of transparency which consists in ensuring, for the benefit of any potential tenderer, a degree of advertising sufficient to enable the service concession to be opened up to competition and the impartiality of procurement procedures to be reviewed.
However, the application of the rules set out in Articles 12 EC, 43 EC and 49 EC, as well as the general principles of which they are the specific expression, is precluded if the control exercised over the concessionaire by the concession-granting public authority is similar to that which the authority exercises over its own departments and if, at the same time, that entity carries out the essential part of its activities with the controlling authority.
The aforementioned provisions and principles preclude, in that regard, a public authority from awarding, without putting it out to competition, a public service concession to a company limited by shares resulting from the conversion of a special undertaking of that public authority, a company whose objects have been extended to significant new areas, whose capital must obligatorily be opened in the short term to other capital, the geographical area of whose activities has been extended to the entire country and abroad, and whose Administrative Board possesses very broad management powers which it can exercise independently.
P. Jann, P
[2005] EUECJ C-458/03, C-458/03, [2005] ECR I-8612, [2006] CEC 144, [2006] All ER (EC) 779, [2006] 1 CMLR 3
Bailii
European
Cited by:
Cited – Tachie and Others v Welwyn Hatfield Borough Council QBD 13-Dec-2013
The three appellants each challenged decisions refusing their homelessness reviews, saying that the decisions had been made by outside contracters and were unlawful.
Held: The company was a subsidiary of the Council, and the Teckal exception . .
Cited – Brent London Borough Council and Others v Risk Management Partners Ltd SC 9-Feb-2011
The council had put out to tender its insurance requirements. The respondent submitted its bid. The council then withdrew the tender in order to take up membership of a mutual company providing such services created by local authorities in London. . .
Lists of cited by and citing cases may be incomplete.
Local Government
Leading Case
Updated: 02 November 2021; Ref: scu.231088