The European Court of Justice (ECJ) ruled on 19 April 2007 (in Case C-295/05) that a public undertaking in Spain providing forestry works and services (known as “Tragsa”) on behalf of other government bodies was not operating in breach of the public procurement directives. According to settled case law relating to "in-house” entities, even where a contracting party is legally distinct from a contracting authority, it is not compulsory to comply with the provisions of a directive if the contracting authority exercises control over that separate entity similar to that which it exercises in relation to its own departments and where the entity caries out an essential part of its activities with the local authority or authorities which control it. The ECJ found that these conditions were met in the case of Tragsa.