Commentary on Judgment No. 18623 of 2024: Direct Awarding to In-House Companies and Competition

The judgment No. 18623 of July 8, 2024, issued by the Court of Cassation, offers an important opportunity for reflection on the awarding of integrated water services to in-house companies. This decision not only clarifies the legitimacy of such practices but also serves as a reference point for understanding the dynamics between public law and competition in our legal system.

The Regulatory Context

The integrated water service is a fundamental area for the daily lives of citizens, and its management is often entrusted to companies fully owned by public entities. The judgment in question establishes that direct awarding to these companies does not violate the community principle of competition, as they are considered an internal component of the public entity.

JOINT-STOCK COMPANY (DEFINITION, CHARACTERISTICS, DISTINCTIONS) - IN GENERAL Generally. The exercise of activities related to the integrated water service can be directly entrusted to "in-house" companies (fully owned by public entities and falling within the optimal territorial area), without this resulting in a violation of the community principle of competition, since these companies, although having their own legal personality, are comparable to an internal structure of the public entity that established them, with the consequent need to respect the principles that inform the correctness and legitimacy of administrative activity, with a view to safeguarding the specific public interest they are entrusted with.

The Implications of the Judgment

This judgment emphasizes the importance of ensuring that in-house companies operate in compliance with the principles of correctness and legitimacy. This implies that, even though these companies are exempt from competition, they must still operate transparently and responsibly. The reference regulations, including Legislative Decree No. 152 of April 3, 2006, establish a clear legal framework for the awarding of public services, but also require constant oversight.

  • Direct awarding to in-house companies is legitimate.
  • Principle of competition not violated.
  • Need to respect the principles of correctness and legitimacy.

Conclusions

Judgment No. 18623 of 2024 represents an important victory for in-house companies and their legitimacy in the management of public services. However, it is essential that these entities continue to operate with a high degree of responsibility and transparency to ensure that the integrated water service is managed efficiently and in respect of the public interest. It is now the duty of public entities to closely monitor these companies, ensuring that service and quality objectives are always achieved.

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