The CNMC's First Direct Public Procurement Ban

Spain's National Markets and Competition Commission (CNMC) has delivered a pivotal decision in the enforcement of competition law by imposing, for the first time, a direct ban on a company's participation in public contracts due to competition law infringements, while also setting the scope and duration of the ban. The decision signals a turning point in Spain's sanctions policy and elevates regulatory risk for all companies operating in regulated markets or engaging with the public sector.

From dormant measure to effective enforcement tool

Since 2015, Spanish public procurement provisions allowed for the exclusion of companies found guilty of severe competition breaches from public procurement. The measure was subsequently enshrined within the Spanish Public Procurement Law 9/2017 (Ley 9/2017 de Contratos del Sector Público, or LCSP), which expressly includes it in article 71.1.b) by establishing that entities that have been sanctioned by final decision for