Directly awarding public service contracts to internal operators: business opportunities or double-edged gifts?

Daniel Ballesteros Alvarez

Chapter 5 in Challenges in Transport Regulation in Europe and Beyond, 2025, pp 84-98 from Edward Elgar Publishing

Abstract: Regulation (EC) No. 1370/2007 entered into force on 3 December 2009. Nevertheless, implementation of its Article 5, which can be considered the cornerstone of opening up public passenger transport services by rail and road to competition, was subject to a ten-year transitional period. This interim phase has meant, in practice, that a significant number of public service contracts currently in force were directly awarded regardless of the Regulation. However, since 24 December 2023 all competent authorities are required to follow competitive tendering procedures open to all operators, although there are some exceptions that still make it possible to opt for direct awards. In this context of regulatory changes, the purpose of this chapter is to address the main controversial issues of interpretation and application raised by the direct award procedure envisaged in favour of so-called ‘internal operators’, since it may gain prominence in the coming years.

Keywords: PSO; Direct awards; Internal operators; Geographical confinement; Minimal influence; Subcontracting (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035369157
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