Granting of Services and Public Procurement: Commentary on Judgment No. 9818 of 2024

The recent order of the Court of Cassation No. 9818, dated April 11, 2024, provides an important clarification regarding public contracts, particularly between the granting of services and public procurement. This distinction is fundamental not only for economic operators but also for public administration, which must navigate an increasingly complex regulatory environment.

The distinction between granting of services and public procurement

According to the ruling, the granting of services is clearly distinct from public procurement of services. In particular, public procurement concerns services provided to public administration, while the granting of services is aimed directly at the public users. This aspect is crucial as it affects the method of remuneration and the management risk.

In general, the granting of services differs from public procurement of services as the latter typically concerns services rendered to public administration rather than to the public users, does not involve the transfer of management rights as a counter-performance, and, finally, does not entail, due to the remuneration methods, the assumption of management risk by the contractor. (In this case, the Supreme Court qualified the relationship between the Customs and Monopolies Agency and the certification bodies for compliance with the law of lawful gaming devices as a granting of services, emphasizing the fact that the activities carried out by these bodies, in addition to being directed towards all operators in the sector, are directly remunerated by those among them who have made a request).

This passage highlights how the Court recognized the nature of granting of services in the relationship between the Customs Agency and the certifying bodies, underlining that these organizations operate in a direct commercial context and not through public administration.

Regulatory and jurisprudential references

The ruling is based on a solid regulatory foundation, citing the Royal Decree of 1931 and Law No. 388 of 2000, which outline the legal contours of concessions and public contracts. Furthermore, the reference to previous jurisprudential maxims, such as judgments No. 9139 of 2015 and No. 8692 of 2022, confirms the continuity of the Court's approach in this matter.

  • Fundamental distinction between granting of services and public procurement
  • Management risk and remuneration methods
  • Implications for public administration and sector operators

Conclusions

In conclusion, order No. 9818 of 2024 represents an important step forward in understanding Italian administrative law, clarifying the differences between granting of services and public procurement. For sector operators, it is essential to understand these distinctions to effectively navigate the legislative and contractual landscape. The ruling not only offers practical guidance but also underscores the importance of a correct interpretation of the rules, which is fundamental to avoiding future disputes and ensuring the proper functioning of public services.

Bianucci Law Firm