EU Procurement Update — 11th issue

This is the 11th issue of Procurement Update, a newsletter for those with an interest in public procurement law. In this issue, DLA Piper covers recent case-law developments in the UK and the EU and two new Cabinet Office Procurement Policy Notes.

On 28 September 2012, the High Court dismissed an action challenging a decision of Hounslow Council to enter into a development agreement for a site in Hounslow Town Centre and to negotiate the terms of the agreement exclusively with one company. The High Court concluded that the proposed agreement does not constitute a breach of Article 56 of the Treaty on the Functioning of the European Union (TFEU). It concluded that the proposed agreement does not impose any obligations on the proposed contractor which engage Article 56. The proposed contractor would be providing no relevant services to the Council and the proposed agreement merely provides for the grant of a head lease. In any event, there would be no restriction on the provision of the relevant services and the proposed contract does not have the requisite cross-border element to be caught by Article 56 of the TFEU. Therefore, the High Court concluded that the Council was not subject to the general principles of EU law in deciding to enter into the proposed agreement (AG Quidnet Hounslow LLP v London Borough of Hounslow [2012] EWHC 2639 (TCC))…

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