Task in the General Interest in Public Procurement Law 2026
Task in the general interest: definition, significance for the concept of contracting authority, and distinction from commercial activity in EU procurement law.
Definition: A task in the general interest is an activity that a legal entity carries out in the interest of the public and which is recognised or organised by the State; it is a constitutive element of the procurement-law concept of a "body governed by public law".
Last updated: January 2026 · Legal status: Art. 2(1)(4) Directive 2014/24/EU, § 99 GWB, § 2 BVergG 2018, CJEU case law
What is a task in the general interest?
The concept of a "task in the general interest" is a central element of the test for qualifying an organisation as a contracting authority within the meaning of procurement law. Whoever qualifies as a contracting authority is subject to the full procurement-law obligations. The EU procurement directives define as contracting authorities, among others, "bodies governed by public law" which – in addition to State control or financing – have been established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character.
Features of a Task in the General Interest
In settled case law, the CJEU has identified three cumulative criteria for qualification as a body governed by public law. An organisation qualifies as such if:
- It has been established for the specific purpose of meeting needs in the general interest
- These needs are not of an industrial or commercial character
- It is established, financed or supervised by State authorities
The criterion of "task in the general interest" is to be interpreted broadly. It covers classical services of general interest such as water supply, waste disposal, healthcare and local public transport.
Distinction: Not of a Commercial Character
Decisive for relevance under procurement law is that the task is not of a purely commercial character. The CJEU has developed the following criteria:
- Is there profit-oriented competition with private companies?
- Does the organisation bear the economic risk of its activity itself?
- Is the activity financed or subsidised by the State?
Where an organisation bears the economic risks alone and operates in competition, there is no body governed by public law, even if the activity is in the general interest (CJEU, Case C-360/96 – BFI Holding).
Practical Significance
Qualification as a body governed by public law determines whether an organisation is subject to procurement-law obligations. Mixed-economy undertakings, State-affiliated companies and public undertakings must always examine whether they pursue tasks in the general interest not of a commercial character.
FAQ
Is every non-profit organisation automatically a body governed by public law? No. Non-profit status under national tax law is not a procurement-law criterion. The decisive factors are the EU procurement-law criteria.
Can private-law undertakings perform tasks in the general interest? Yes. Even undertakings organised under private law can be bodies governed by public law if they are State-controlled and pursue tasks in the general interest not of a commercial character.
What is the difference from sector contracting entities? Sector contracting entities pursue specific activities in network sectors (energy, water, transport, postal services). Bodies governed by public law are defined more broadly and are not restricted to specific sectors.
Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.
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