Affiliated Companies in Procurement Law 2026

Affiliated companies in procurement law: definition, disclosure duties and impact on bidding consortia and conflicts of interest.

Definition: Affiliated companies in the procurement-law sense are companies linked by majority shareholding, a control relationship or joint management, which – where they take part in the same procurement procedure – triggers special disclosure duties and can give rise to conflicts of interest or unlawful restrictions of competition.

Last updated: January 2026 · Legal basis: § 36 VgV, Article 24 of Directive 2014/24/EU, BVergG 2018

What are affiliated companies in procurement law?

In procurement law, "affiliated companies" refers to groups of companies in which one company exercises a controlling influence over another or in which both are subject to joint management. The procurement-law relevance arises from the risk that affiliated companies taking part in a procurement procedure jointly or individually could distort competition – for example through coordinated bids or the exchange of confidential information.

The definition follows European company law (in particular Directive 2013/34/EU on annual financial statements) and the procurement-law provisions of Directive 2014/24/EU.

Disclosure duty

Affiliated companies that take part in a procurement procedure are required to disclose their affiliation. This duty allows the contracting authority to detect potential conflicts of interest and to take appropriate measures. Bidders must declare whether they are affiliated with other bidders or candidates.

Impact on the award

Where affiliated companies submit separate bids, the contracting authority examines whether there is an unlawful restriction of competition. Where the companies have, despite being affiliated, demonstrably prepared their bids independently and no confidential information has been exchanged, simultaneous participation may be permitted. In case of doubt, however, the bids must be excluded.

In the utilities sector and in concession awards, special rules apply to affiliated companies, because utilities contracting authorities are themselves often part of a group.

Bidding consortia and affiliated companies

Affiliated companies that wish to participate in a procurement procedure together as a bidding consortium must ensure that this is permissible under antitrust law. It is generally not permissible to submit a joint bid and an individual bid from a member of the bidding consortium at the same time.

Related terms

FAQ

When are companies considered to be "affiliated"? When one company holds the majority of voting rights, where a control relationship exists (e.g. by contract), or where both companies are under the management of the same parent company.

Does affiliation automatically lead to exclusion from the procurement procedure? No. Affiliation alone is not enough. Only where it is shown that competition is actually distorted by the affiliation can exclusion come into question.

Do affiliated companies have to disclose their affiliation unprompted? Yes, where the procurement documents require it. Many contracting authorities require such declarations as part of the suitability evidence.

Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialised in procurement law.