ECJ confirms strict interpretation of in-house procurement

Under the European public procurement framework, contracting authorities may award contracts directly to a legally separate entity without applying standard tender procedures, provided specific conditions are met. These include the requirement that the contracting authority exercises control over the entity comparable to that exercised over its own departments. In addition, the controlled entity must carry out more than 80% of its activities for the controlling authority or authorities, calculated on the basis of average total turnover.