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Güeñes Municipality's Local Preference Violates Competition Law

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Photo: Fatima Shahid

The Spanish competition authority has ruled that the Güeñes municipality's practice of favoring local producers in public contracts is discriminatory and violates competition laws.

08.04.2026 | Spanish competition authority


The Spanish competition authority, CNMC, has addressed a significant issue regarding the Güeñes municipality's allocation of positions at the San José Fair. The municipality was awarding up to 40% of the evaluation score based on territorial criteria, which CNMC has deemed discriminatory.

This practice violates the principle of non-discrimination as outlined in Articles 3 and 18 of the Law on the Guarantee of Market Unity (LGUM). The CNMC emphasized that territorial ties cannot be a requirement or evaluation criterion for public contracts.

Furthermore, the CNMC referenced a previous ruling by the National Court, which stated that giving preferential scoring to operators based on their residence is discriminatory. If sustainability were the concern, the municipality should utilize objective criteria such as carbon footprint or distribution proximity instead.

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