Restriction of Competition in Public Procurement Law 2026

Definition: A restriction of competition in the procurement-law sense exists where collusion between bidders, discriminatory requirements of the contracting authority or other impermissible measures impair free and fair competition in the award of public contracts.

Last updated: January 2026 · Legal basis: § 97 GWB, Art. 18 Directive 2014/24/EU, BVergG 2018

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What is a restriction of competition?

Restrictions of competition jeopardise the core principle of public procurement law: open, fair competition between bidders for public contracts. Procurement law requires public contracting authorities to design procurement procedures in such a way that genuine competition between companies can develop. Restrictions of competition can come both from bidders (e.g. through bid-rigging) and from the contracting authority itself (e.g. through discriminatory suitability requirements or product-specific specifications).

Forms of restriction of competition

In procurement law a distinction can be drawn between restrictions of competition on the bidder side and on the contracting-authority side.

Bidder-side restrictions of competition

Collusion between bidders – so-called bid-rigging or bidder agreements – is a criminal offence under § 298 StGB (Germany) and infringes the cartel prohibition of Art. 101 TFEU. Typical forms are:

• Price agreements: bidders agree on minimum prices or coordinate their tenders.
• Market sharing: companies agree not to compete against each other in certain regions.
• Cover bids (sham bids): a bidder deliberately submits an excessively high tender in order to secure the award for another bidder.

Contracting-authority-side restrictions of competition

Contracting authorities can also unlawfully restrict competition, for example by:

• Specifications that are too narrow or tailored to a particular product (lead product)
• Excessive or factually unjustified suitability requirements
• Discriminatory award criteria

Legal consequences

Restrictions of competition lead, depending on their nature, to criminal-law, civil-law or procurement-law consequences. Bidders involved in collusion can be excluded from the procurement procedure (§ 124 para. 1 no. 4 GWB; § 68 BVergG 2018). They also face entry in the competition register, fines under competition law and criminal prosecution.

Related terms

• Principle of Competition
• Competition Register
• Price Agreement
• Ground for Exclusion

FAQ

What is bid-rigging? Bid-rigging is a secret arrangement between bidders concerning prices, tenders or awards that prevents competition. In Germany it is a criminal offence under § 298 StGB.

Can a bidder be excluded for a restriction of competition? Yes. Contracting authorities can – and in certain circumstances must – exclude bidders where sufficient evidence indicates a restriction of competition.

What can a contracting authority do if it suspects collusion? It can exclude tenders that indicate collusion from the evaluation and report the matter to the competition authority.

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Last updated: January 2026 All information is provided without guarantee. For legally binding advice please consult a law firm specialising in public procurement law.