Commission Implementing Decision (EU) 2016/1804
of 10 October 2016
on the detailed rules for the application of Articles 34 and 35 of Directive 2014/25/EU of the European Parliament and of the Council on procurement by entities operating in the water, energy, transport and postal services sectors
(notified under document C(2016) 6351)
(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
After consulting the Advisory Committee for Public Contracts
Whereas:
In view of the time-limits laid down for the conduct of the procedure under Article 35 of Directive 2014/25/EU, it is necessary to provide that requests concerning the applicability of its Article 34 must include information which is useful and relevant to the evaluation of the request. To this end, a list should be drawn up of the information to be contained in such requests and of other practical procedures relating to them.
In order to ensure legal certainty and for purposes of transparency, notices of receipt or withdrawal of requests concerning the applicability of Article 34 of Directive 2014/25/EU, notices of extension or suspension of the period for the adoption by the Commission of implementing acts concerning those requests and notices of the applicability of Article 34 where no implementing act has been adopted within the deadline should be published in the Official Journal of the European Union. It is also necessary to stipulate the information to be contained in such notices.
It should be recalled that the assessment of direct exposure to competition that can be carried out in the context of Directive 2014/25/EU is without prejudice to the full-fledged application of competition law.
This Decision should replace Decision 2005/15/EC which was adopted on the basis of Directive 2004/17/EC. Decision 2005/15/EC should therefore be repealed.
HAS ADOPTED THIS DECISION:
Article 1
1.
Requests concerning the applicability of Article 34 of Directive 2014/25/EU submitted in accordance with Article 35 of that Directive (‘requests concerning the applicability of Article 34’) shall contain at least the information laid down in Annex I to this Decision. They shall follow the structure of Annex I to this Decision.
2.
Where an independent national authority that is competent in relation to the activity concerned has adopted a reasoned and substantiated position as referred to in Article 35 of Directive 2014/25/EU, that position shall accompany the request.
3.
Except under the particular circumstances referred to in the fourth subparagraph of Article 40(1) and where generalised use of electronic means of communication has been postponed pursuant to Article 106(2) of Directive 2014/25/EU, the requests referred to in paragraph 1 and the positions referred to in paragraph 2 shall be transmitted by electronic means to the electronic mailbox indicated for that purpose on the Commission's website and communicated to the Member States.
4.
Where a request as referred to in paragraph 1 or a position as referred to in paragraph 2 is transmitted by other means than electronic means of communication in accordance with Article 40(1) or Article 106(2) of Directive 2014/25/EU, they shall be transmitted in triplicate by post or other suitable carrier to the Commission address published on its website and communicated to the Member States.
Article 2
1.
Where the Commission receives a request concerning the applicability of Article 34 and access to the market is deemed not to be restricted in accordance with the first subparagraph of Article 34(3) of Directive 2014/25/EU, it shall publish a notice containing the information set out in Part A of Annex II to this Decision.
Where the Commission receives a request concerning the applicability of Article 34 and free access to the market cannot be presumed pursuant to the first subparagraph of Article 34(3) of Directive 2014/25/EU, it shall publish a notice containing the information set out in Part B of Annex II to this Decision.
2.
Where the period for the adoption of the implementing acts referred to in Article 35 of Directive 2014/25/EU is extended in accordance with the fourth subparagraph of paragraph 1 of Annex IV to that Directive, the Commission shall publish a notice containing the information set out in Part A of Annex III to this Decision.
3.
Where the period for the adoption of the implementing acts referred to in Article 35 of Directive 2014/25/EU is suspended in accordance with paragraph 2 of Annex IV to that Directive, the Commission shall publish a notice containing the information set out in Part B of Annex III to this Decision. The Commission shall publish a notice containing the information set out in Part C of Annex III to this Decision when the suspension ends.
4.
Where the request concerning the applicability of Article 34 of Directive 2014/25/EU is withdrawn by the applicant, the Commission shall publish a notice containing the information set out in Part D of Annex III to this Decision.
5.
Where contracts intended to enable a given activity to be carried out and design contests that are organised for the pursuit of such an activity cease to be subject to Directive 2014/25/EU because the Commission has not adopted the implementing act within the period provided for in Annex IV to that Directive, the Commission shall publish a notice containing the information set out in Annex IV to this Decision.
6.
The information foreseen in the notices set out in Annexes II, III and IV may be changed and added to as appropriate, for instance where a previously submitted request is substantially modified in accordance with Article 35(4) of Directive 2014/25/EU.
7.
The notices provided for in paragraphs 1 to 5 shall be published in the Official Journal of the European Union.
Article 3
Decision 2005/15/EC is repealed.
Article 4
This Decision is addressed to the Member States.
Done at Brussels, 10 October 2016.
For the Commission
The President
Jean-Claude Juncker
ANNEX IINFORMATION TO BE PROVIDED IN REQUESTS CONCERNING THE APPLICABILITY OF ARTICLE 34 OF DIRECTIVE 2014/25/EU
1.Section 1 — Identity and status of applicant
Article 35 of Directive 2014/25/EU provides that requests concerning the applicability of Article 34 are to be made by the Member States or, when the legislation of the Member State concerned provides for it, by the contracting entities. Depending on the case, the term ‘applicant’ may refer therefore to either the Member State or the contracting entities. It is used merely in the interest of simplification.
1.1.
Full name and address of the applicant:
1.3.
For a contracting authority: are you making the request for and on behalf of your Member State?
1.4.
2.Section 2 — Description of the activity covered by this request
2.1.
2.2.
Where this differs from the national territory as a whole, indicate the area in which the activity covered by this request is carried out. Mention only the area in which you consider that the conditions of Article 34(1) are met.
3.Section 3 — The relevant market
the own- and cross-price elasticities of demand of the relevant products and/or services,
any differences in the end use to which the products are put,
differences in price between two products,
the cost of switching from one product to another, in the case of two potentially competing products,
established or entrenched consumer preferences for one type or category of product,
product classifications (classifications maintained by trade associations, etc.).
the nature and characteristics of the products or services concerned,
the existence of barriers to entry,
consumer preferences,
appreciable differences in market shares or substantial price differences between neighbouring areas,
transport costs.
3.1.
In the light of the above, please explain the definition of the relevant product market or markets that, in your opinion, should form the basis of the Commission's analysis.
In the questions below, this (or these) definition(s) is (are) referred to as ‘the relevant product market(s)’.
3.2.
In the questions below, this (or these) definition(s) is (are) referred to as ‘the relevant geographical market(s)’.
4.Section 4 — Applicability of the legislative acts referred to in Annex III to Directive 2014/25/EU.
4.1.
5.Section 5 — Information concerning the relevant market and access to that market
This section must be completed irrespective of the reply to point 4.1 above.
Certain points may not be relevant for some activities or the factual situation of a given applicant — in such cases, please indicate so point by point.
The applicant may limit itself to giving a precise reference point by point to the relevant part(s) of a reasoned and substantiated position as referred to in Article 35 of Directive 2014/25/EU, adopted by an independent national authority that is competent in relation to the activity concerned, in which the point concerned is analysed.
5.1.
Please give the reasons why you consider that access to the relevant market is not restricted.
5.2.
- (a)
the EEA territory,
- (b)
the EU as a whole,
- (c)
the territory of the EFTA States as a whole,
- (d)
each Member State and each EFTA State where the applicant carries out an activity, and
- (e)the relevant geographical market19, if the applicant considers that this market is different,
please provide the information referred to in points 5.2.1 to 5.2.9:
- 5.2.1.an estimate of the total size of the market in terms of sales value (in Euro) and volume (units)20, indicating the basis for the calculations and sources used and providing documents, where available, to confirm these calculations;
- 5.2.2.
the sales in value and volume, as well as an estimate of the market share held by the applicant;
- 5.2.3.
an estimate of the market share in value (and, where appropriate, volume) of all competitors (including importers) having at least 10 % of the geographical market under consideration. Provide documents, where available, to confirm the calculation of these market shares and provide the name, address, telephone number, fax number and appropriate contact person, of these competitors;
- 5.2.4.
an estimate of the total value, volume and source of imports from outside the EEA territory and identify:
- (a)
the share of such imports attributable to the applicant;
- (b)
an estimate of the extent to which any quotas, tariffs and non-tariff barriers to trade constitute barriers to these imports; and
- (c)
an estimate of the extent to which transportation and other costs affect these imports;
- (a)
- 5.2.5.
the extent to which trade between States within the territory of the EEA is hindered by:
- (a)
transportation and other costs; and
- (b)
other non-tariff barriers to trade;
- (a)
- 5.2.6.
the manner in which the applicant produces and sells the products or services; for example, whether they are manufactured locally, or are sold through local distribution networks;
- 5.2.7.
a comparison of the applicant's and its competitors' price levels in each Member State and EFTA State and a similar comparison of price levels between the EU, the EFTA States and other areas where these products are produced (for example, Eastern Europe, the United States of America, Japan, or any other relevant area);
- 5.2.8.
the nature and extent of the vertical integration of the applicant compared with the largest competitors;
- 5.2.9.information on the cost structure of the applicant21. Also, specify any assets or infrastructure used jointly with other entities or used to carry out more than one activity covered by Directive 2014/25/EU. Where the use of such assets or infrastructures is subject to special conditions, such as universal service obligations or special rights, please specify.
5.3.
Please provide the following information:
5.3.1.
5.3.2.
In the opinion of the applicant are there any undertakings (including those at present operating only in markets outside the EU or outside the EEA) that could enter the market? If the answer is ‘yes’, please explain why and identify such undertakings by name, address, telephone number, fax number and appropriate contact person, and give an estimate of the time within which such market entry is likely to occur.
5.3.3.
Describe the various factors influencing entry into the relevant markets in this case, from both a geographical and product viewpoint. In so doing, take account of the following, where appropriate:
- (a)
the total costs of entry (research and development, distribution systems necessary, promotion, advertising, after-sales service, etc.) on an equivalent scale to that of a significant viable competitor, indicating the market share of such a competitor;
- (b)
any legal or regulatory barriers to entry, such as government authorisation or the existence of any standards;
- (c)
any restrictions created by the existence of patents, know-how and other intellectual property rights in these markets and any restrictions created by the licensing of such rights;
- (d)
the extent to which the applicant is a licensee or licensor of patents, know-how and other rights in the relevant markets;
- (e)
the importance of economies of scale for the production of products in the relevant markets;
- (f)
access to sources of supply, such as availability of raw materials.
RESEARCH AND DEVELOPMENT
5.3.4.
Give an account of the importance of research and development in the ability of an undertaking operating in the relevant market(s) to compete in the long term. Explain the nature of the research and development carried out by the applicant in the relevant markets.
In so doing, take account of the following, where appropriate:
- (a)trends and intensity of research and development23 in these markets and for the applicant;
- (b)
technological developments in these markets over an appropriate time period (in particular developments in products and/or services, production processes, distribution systems, and so on);
- (c)
the major innovations that have been made in these markets and the undertakings responsible for these innovations;
- (d)
the cycle of innovation in these markets and where the parties are in this cycle of innovation.
COOPERATION AGREEMENTS
5.3.5.
To what extent do cooperation agreements (horizontal or vertical) exist in the relevant markets?
5.3.6.
Give details of the most important cooperation agreements concluded by the applicant in the relevant markets, such as research and development, licensing, joint production, specialisation, distribution, long term supply and exchange of information agreements.
6.Section 6 — Exposure to competition
Certain points may not be relevant for some activities or the factual situation of a given applicant — in such cases, please indicate so point by point.
The applicant may limit itself to giving a precise reference point by point to the relevant part(s) of a reasoned and substantiated position as referred to in Article 35 of Directive 2014/25/EU, adopted by an independent national authority that is competent in relation to the activity concerned, in which the point concerned is analysed.
According to Article 34(2) of Directive 2014/25/EU, the question of whether an activity is directly exposed to competition must be decided on the basis of criteria that are in conformity with provisions on competition of the TFEU, such as the characteristics of the goods or services concerned, the existence of alternative goods or services, the prices, and the actual or potential presence of more than one supplier of the goods or services in question.
6.1.
Explain why you consider that the activity covered by this request is fully exposed to competition in the relevant product market on the relevant geographical market(s). In particular, give the following information:
GENERAL CONDITIONS ON THE RELEVANT MARKET
6.1.1.
Please also identify the undertakings affiliated to the applicant and their individual shares of the applicant's purchases (of raw materials or goods used to produce the relevant products). Provide the name, address, telephone number, fax number and appropriate contact person, of these undertakings.
STRUCTURE OF SUPPLY IN THE RELEVANT MARKETS
6.1.2.
Describe the distribution channels and after-sales service networks that exist in the relevant markets. In doing so, take account of the following, where appropriate:
- (a)
the existing distribution systems and their importance in these markets. To what extent is distribution performed by third parties or by undertakings affiliated to the applicant?
- (b)
the existing after-sales service networks (for example, maintenance and repair) and their importance in these markets. To what extent are these services performed by third parties or by undertakings affiliated to the applicant?
6.1.3.
Where appropriate, provide an estimate of the total EU-wide and EFTA-wide capacity for the last three years. During this period, what was the capacity of the applicant and what was the rate of its capacity utilisation?
6.1.4.
Please indicate any other supply-side considerations you consider to be relevant.
STRUCTURE OF DEMAND IN THE RELEVANT MARKETS
6.1.5.
Identify the five largest independent customers of the applicant in the relevant market and their individual shares of total sales of the relevant products by the applicant. Provide the name, address, telephone number, fax number and appropriate contact person, of each of these customers.
6.1.6.
Explain the structure of demand in terms of:
- (a)
the different phases of the markets, for example, take-off, expansion, maturity and decline, and a forecast of the growth rate of demand;
- (b)
the importance of customer preferences, in terms of brand loyalty, product differentiation and the provision of a full range of products;
- (c)
the degree of concentration or dispersion of demand;
- (d)
segmentation of customers into different groups with a description of the ‘typical customer’ of each group;
- (e)
the importance of exclusive distribution contracts and other types of long-term contracts;
- (f)
the extent to which contracting authorities, State undertakings or similar bodies are important as a source of demand.
6.1.7.
Provide estimates of the degree of consumer activity in terms of switching supplier and renegotiating contracts in the last five years. Also give the sources used for this and, where available, the necessary documents to confirm the estimates.
ANNEX IIINFORMATION TO BE CONTAINED IN NOTICES OF REQUESTS CONCERNING THE APPLICABILITY OF ARTICLE 34 OF DIRECTIVE 2014/25/EU
A.Access to the market is deemed not to be restricted in accordance with the first subparagraph of Article 34(3) of Directive 2014/25/EU
According to Article 35(5) of Directive 2014/25/EU, further requests concerning [brief mention of the relevant sector or activity] in [indicate the Member State concerned] before the expiry of the period opened in respect of this request shall not be considered as new procedures and shall be treated in the context of this request.
B.Free access to the market cannot be presumed on the basis of the first subparagraph of Article 34(3) of Directive 2014/25/EU
According to Article 35(5) of Directive 2014/25/EU, further requests concerning [brief mention of the relevant sector or activity] in [indicate the Member State concerned] before the expiry of the period opened in respect of this request shall not be considered as new procedures and shall be treated in the context of this request.
ANNEX IIIINFORMATION TO BE CONTAINED IN NOTICES OF REQUESTS CONCERNING THE APPLICABILITY OF ARTICLE 34 OF DIRECTIVE 2014/25/EU — EXTENSION OR SUSPENSION OF PERIODS FOR THE ADOPTION OF IMPLEMENTING ACTS OR WITHDRAWAL OF A REQUEST
A.Extension of the period for adoption of implementing acts
The final deadline therefore expires on […].
B.Suspension of the period for adoption of implementing acts
Pursuant to Annex IV, paragraph 2, of Directive 2014/25/EU, the Commission may require the Member State or the contracting entity concerned or the competent independent national authority or any other competent national authority to provide all necessary information or to supplement or clarify information given within an appropriate time limit. On […] the Commission asked […] to provide additional information by […] at the latest.
C.End of the suspension of the period for adoption of implementing acts
On […] the Commission asked […] to provide additional information by […] at the latest. As announced in the notice that was published on page number […] of OJEU C number […] of […], the final deadline was prolonged by […] working days after the receipt of the complete and correct information. Complete and correct information was received on […].
The final deadline therefore expires on […].
D.Withdrawal of a request concerning the applicability of Article 34 of Directive 2014/25/EU
On […], the applicant withdrew the request, which is to be considered null and void. There is consequently no reason to decide whether Article 34 of Directive 2014/25/EU applies to [brief mention of the relevant sector or activity] in [that country/indicate the Member State concerned]. Directive 2014/25/EU therefore continues to apply in accordance with its own provisions when contracting entities award contracts for the pursuit of [brief mention of the relevant sector or activity] in [indicate the Member State concerned] and when they organise design contests for the pursuit of this activity in that geographical area.
ANNEX IVINFORMATION TO BE CONTAINED IN NOTICES OF REQUESTS CONCERNING THE APPLICABILITY OF ARTICLE 34 OF DIRECTIVE 2014/25/EU — APPLICABILITY OF ARTICLE 34(1) OF THE DIRECTIVE WHERE NO IMPLEMENTING ACT HAS BEEN ADOPTED WITHIN THE DEADLINE
Since the period for adoption of a decision expired on […] without the adoption of a decision, Article 34(1) of said Directive is deemed to apply. Consequently, the provisions of Directive 2014/25/EU do not apply to the award of contracts for the pursuit of [brief mention of the relevant sector or activity] in [indicate the Member State concerned] nor to design contests organised for the pursuit of this activity in that geographical area.