Competition Principle in Procurement Law 2026

Competition principle: Core principle of procurement law that ensures fair and open bidder competition in the award of public contracts.

Definition: The competition principle obliges public contracting authorities to design procurement procedures in such a way that genuine, non-discriminatory competition between the largest possible number of suitable companies is created and maintained.

Last updated: January 2026 · Legal status: § 97 (1) GWB, Art. 18 Directive 2014/24/EU, § 19 BVergG 2018

What is the competition principle?

The competition principle is one of the foundational structural principles of all public procurement law. It is expressly codified in § 97 (1) GWB for Germany and in § 19 BVergG 2018 for Austria, and finds its EU-law basis in Art. 18 of Procurement Directive 2014/24/EU. The principle requires that procurement procedures must be designed for competition: the largest possible number of suitable companies should have the opportunity to apply for public contracts and find fair, equal conditions.

Content and requirements

The competition principle generates concrete obligations across the entire procurement process.

Duty to open the market

Contracting authorities must design procurement procedures so that the market is open to all suitable companies. This includes in particular the public notice of contracts and the non-discriminatory drafting of requirements.

Prohibition of unnecessary restrictions

Requirements in the technical specifications, in the suitability assessment or in the award criteria must not go beyond what is objectively necessary. Leading brand specifications, excessive minimum turnover requirements or unjustifiably narrow reference requirements violate the competition principle.

Division into lots

To enable small and medium-sized enterprises to participate, contracts must in principle be divided into specialist and partial lots (§ 97 (4) GWB; Art. 46 Directive 2014/24/EU), provided this is economically and technically reasonable.

Prohibition of distortions of competition

Agreements between bidders (bid rigging) violate the competition principle just as much as targeted preferential treatment of individual bidders by the contracting authority.

Distinction from related principles

The competition principle is closely connected with the transparency obligation, the equal treatment obligation and the prohibition of discrimination, but is to be distinguished from these. While transparency and equal treatment concern the procedure itself, the competition principle aims at the structural result: a functional bidder competition.

Legal consequences of violations

Violations of the competition principle must be raised in review proceedings before the procurement chamber or the Federal Administrative Court (Austria). Affected bidders can apply for the annulment of unlawful procurement decisions or for the procedure to be reset to an earlier stage.

Related terms

FAQ

Where is the competition principle legally anchored? In Germany in § 97 (1) GWB, in Austria in § 19 BVergG 2018, at EU level in Art. 18 of Directive 2014/24/EU.

Does a contracting authority violate the competition principle if it invites only a few bidders to submit offers? A restricted procedure is permissible if it is provided for by law and the selection of bidders is made on objective, comprehensible criteria. An arbitrary restriction of the circle of bidders would be unlawful.

Does the competition principle apply below the EU thresholds as well? Yes. Even in the national sub-threshold area, the requirement of a competitive procurement procedure applies, although the specific requirements are less strict.

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