European Court of Justice Clarifies Conditions for Negotiated Procedures Without Prior Publication, Based on Exclusive Rights
Overview
On January 30, 2025, the French Ministry of Economy and Finance published a letter from the Directorate of Legal Affairs (DAJ) summarizing a recent judgment by the Court of Justice of the European Union (CJEU). The judgment clarifies the conditions under which contracting authorities may use the negotiated procedure without prior publication, based on the existence of exclusive rights.
Background
The negotiated procedure without prior publication is a simplified procurement procedure that allows contracting authorities to negotiate directly with a single candidate without conducting a competitive tendering process. It can be used in certain limited circumstances, such as when the contract is based on exclusive rights.
CJEU Judgment
In its judgment, the CJEU ruled that the negotiated procedure without prior publication can only be used if the exclusive rights:
- Are legally protected and enforceable against third parties;
- Prevent effective competition; and
- Are not unduly restrictive of access to the market.
Implications for Contracting Authorities
This judgment provides contracting authorities with clearer guidance on when they can use the negotiated procedure without prior publication. It emphasizes the importance of carefully assessing the nature and scope of the exclusive rights before using this procedure.
Example
The judgment clarifies, for example, that the exclusive rights to distribute a particular software product would not justify using the negotiated procedure without prior publication if there are alternative software products available on the market.
Conclusion
The CJEU’s judgment provides valuable clarification on the use of the negotiated procedure without prior publication. It helps ensure that this procedure is used only in appropriate circumstances and does not lead to undue restrictions on market competition.
Lettre de la DAJ – La Cour de Justice de l’Union européenne précise les conditions de recours à la procédure négociée sans publicité préalable, fondée sur l’existence de droits d’exclusivités
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