On 29 November 2007, the European Court of Justice (ECJ) gave its judgment on an infringement action against Italy concerning a failure to comply with the procurement rules in relation to a framework agreement for healthcare transport services. The contracts in question had been awarded to consortia involving the Red Cross and a number of charities. The ECJ dismissed Italy's claim that the rules do not apply to charities or other not-for-profit bodies since, in this instance, they were carrying out economic activities. The Court also dismissed an argument that the contract was not for pecuniary interest on the basis that the charitable organisations only received payments that covered their costs. However, the Commission had failed to adduce evidence that the value of the contracts were above the relevant threshold and the action was dismissed on this basis.
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ECJ rules on Italian healthcare transport services case
- Nabarro LLP
- Cyrus Mehta, Rachel Bickler
- European Union, Italy
- January 3 2008
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Philip I. Weis
Senior Corporate Counsel
Pfizer