DLA Piper has won, together with the Municipality of Leeuwarden represented by law firm Nysingh, a protracted and complex dispute in two instances about the procurement of household waste collection.
The District Court and the Court of Appeal both found that Fryslân Miljeu Noord-West, as a branch of 10 municipalities in Friesland, is an institution falling under public law, to which the Municipality of Leeuwarden was permitted to award the contract to collect household waste through in-house procurement (inbesteding).
The courts held that this did not constitute prohibited state aid and dismissed the complaint put forward by commercial waste companies Sita and Van Gansewinkel (represented by law firm Stibbe) that the Friesland municipalities in question had an obligation to award the collection contract through a regular tendering procedure and therefore in competition with market operators such as Sita and Van Gansewinkel.
The courts similarly dismissed the complaint that the failure to conduct a regular tendering procedure by definition constitutes prohibited state aid, since the rate was not determined through competition.
DLA Piper acted for Fryslân Miljeu and Léon Korsten advised.