ABSTRACT
The EU Public Procurement law is formed in order to reduce trade barriers and to exploit comparative advantages of member states by opening the markets up to competition (Arrowsmith 2010). However, it may actually be inhibiting a competition. Studies conducted in the EU countries show how purchasers within the public authorities regard the legislation to be complicated; therefore, they play it safe in order to avoid situations where bidders involved in a tendering process appeal a contract (Morgan 2008; Schapper et al. 2006). Playing it safe results in an inflexible procurement process that reduces the ability to provide end users with a public service that they demand (Uyarra and Flanagan 2010). Also, smaller actors in the market perceive the legislation to be complicated, inhibiting them from participating in the tendering processes (Karjalainen and Kemppainen 2008). As a consequence, larger suppliers have come to dominate several of the markets for public services. Consequently, instead of opening the markets up to competition, the public procurement law could be regarded as reducing the competition and innovation on several markets.
