Competition law

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Prohibition on contracting with the public sector for infringement of competition law

Competition law

The National Commission on Markets and Competition (CNMC) has made an important decision that directly affects a company in the renewable energy sector, it has sanctioned not only with a financial penalty, but also by prohibiting it from participating in tenders and contracts with any public entity in Spain for six months. What happened? The sanctioned company was responsible for managing

access to the electricity grid at a specific point and, according to the CNMC, it used that advantageous position to harm a competitor and benefit another company in the same commercial group. It is considered to have acted without transparency and in a discriminatory manner, which is an abuse of power in the market. Until recently

, to impose a prohibition like this, a procedure had to be followed in which other State bodies intervened to specify the details. However, since June 2023 the CNMC itself can decide in its resolution both the scope and duration of the prohibition, significantly streamlining the process. In this case, the

prohibition specifically refers to public contracts related to activities specific to wind energy, such as the construction, operation, and maintenance of parks. Although the misconduct occurred only in Burgos, the sanction is valid throughout Spain and for any contract with the public sector. For the CNMC, if a company

abuses its position and undermines fair competition, it may be temporarily barred from working with the administration, in addition to having to pay a fine. If you feel aggrieved and dissatisfied with an administrative decision, our professionals are at your disposal to defend your interests.

If you feel aggrieved and dissatisfied with a decision of the Administration, our professionals are at your disposal for the defense of your interests