Subsidiary trading companies and procurement


The recent judgment of the ECJ UAB LitSpecMet v UAB Vilniaus Lokomotyvų Remonto Depas C-567/15 has clarified situations when subsidiary companies established by public contracting authorities will be considered as contracting authorities in their own right.

The court in clarifying whether VLRD was classified as a “body governed by public law” held that the relevant test was to be applied to the activities of the VLRD, and not the parent company to determine whether it was a body governed by public law, and therefore a contracting authority.


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