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CJEU restricts Hamburg exemption (Article 12(4)(a)): genuine, jointly planned and implemented inter‑authority cooperation required; cost‑reimbursement waste contract not exempt (Remondis v Abfallzweckverband)

Published on: 16 June 2020

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Remondis GmbH v Abfallzweckverband Rhein-Mosel-Eifel Case C-429/19 ECLI:EU:C:2020:436

What are the practical implications of this case?

The Court of Justice has persisted with a narrow reading of exemptions in the Public Procurement Directive (Directive 2014/24/EU) and took a purposive stance when construing a contract said to be exempt. The Court of Justice confirmed the degree of collaboration needed for reliance on the Hamburg exemption, insisting that cooperation must be genuinely set up or carried out to have effect. This maintains a strict view of derogations and emphasises demonstrable, substantive collaboration in practice. To rely on the exemption, contracting authorities should think carefully about how they frame, evidence, and deliver joint strategies and mutual advantages when entering a Hamburg-exempt arrangement. If they neglect this, and cannot show real collaboration in practice, disgruntled private sector operators disadvantaged by apparently exempt public-to-public deals will be more inclined to contest them. Where one party’s central duty is simply to remunerate the other, the exemption is unlikely to apply.

What was the background? Legal context

Article 12(4)(a) of Directive 2014/24/EU (implemented by PCR 2015, SI 2015/102, reg 12(7)) states that a contract concluded solely between two or more contracting authorities lies outside the scope of...

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