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A change of company share ownership may result in the impossibility of continuing the execution of an “in-house” contract

On 12 May 2022, the Court of Justice of the European Union further clarified the scope of the in-house exemption provided for in Article 12 of Directive 2014/24/EU (case C-719/20).

Under Article 12(3) of Directive 2014/24, a public contract may be awarded to a legal person without applying the Directive (i.e., without a public procurement procedure) provided that (i) the contracting authority exercises jointly with other contracting authorities a control over that legal person which is similar to that which they exercise over their own departments; (ii) more than 80 % of the activities of that legal person are carried out in the performance of tasks entrusted to it by the controlling contracting authorities or by other legal persons controlled by the same contracting authorities; and (iii) subject to certain exceptions, there is no direct private capital participation in the controlled legal person. Read more…