The European Commission claims that the award by the Swedish municipalities of Ängelholm and Helsingborg of several waste management contracts to two companies they co-own with other municipalities do not meet the exception for ‘in-house’ contracts. According to the case law of the European Court of Justice, the ‘in-house’ exception applies only where the authorities exercise the same degree of control over the provider as it would over its own administrative departments and the provider does the major part of its activities for its owners (in this instance the municipalities). According to the Commission, the waste management providers in question accrue a significant percentage of their turnover from the private sector. The Commission therefore believes that the test is not met and the municipalities should be going out to public tender for the waste management services.