Collusion and Competition from a State and Market Perspective
‘Public Procurement: Global Revolution VI’ Conference, Law School, University of Nottingham, 24-25 June 2013, Forthcoming
14 Pages Posted: 28 Feb 2013
Date Written: February 28, 2013
This paper indentifies the two-dimensional relationship that procurement and competition keep. From a ‘market’ perspective, public procurement needs to take place in an environment free from collusion between tenderers, or bid rigging. Public buyers only can achieve value for money if tenderers engage in effective competition, both in the market and within the tender procedure. In turn, and from a ‘State’ perspective, it must be stressed that public procurement rules can themselves be sources of distortions and restrictions of competition. Therefore, procurement reform needs to be clearly stirred towards minimising the sources of potential competitive distortions. In its final part, the paper assesses two of the main proposed reforms in the current revision of the EU public procurement Directives from the competition perspective: the rules on exclusion of bid riggers and the possible consolidation of a general principle of competition.
Keywords: public procurement, market competition, bid rigging, public restrictions, reform
JEL Classification: H57, K21, K23, K42
Suggested Citation: Suggested Citation