Procurement centralisation, digital technologies and competition (new working paper)

Source: Wikipedia.

I have just uploaded on SSRN the new working paper ‘Competition Implications of Procurement Digitalisation and the Procurement of Digital Technologies by Central Purchasing Bodies’, which I will present at the conference on “Centralization and new trends" to be held at the University of Copenhagen on 25-26 April 2023 (there is still time to register!).

The paper builds on my ongoing research on digital technologies and procurement governance, and focuses on the interaction between the strategic goals of procurement centralisation and digitalisation set by the European Commission in its 2017 public procurement strategy.

The paper identifies different ways in which current trends of procurement digitalisation and the challenges in procuring digital technologies push for further procurement centralisation. This is in particular to facilitate the extraction of insights from big data held by central purchasing bodies (CPBs); build public sector digital capabilities; and boost procurement’s regulatory gatekeeping potential. The paper then explores the competition implications of this technology-driven push for further procurement centralisation, in both ‘standard’ and digital markets.

The paper concludes by stressing the need to bring CPBs within the remit of competition law (which I had already advocated eg here), the opportunity to consider allocating CPB data management to a separate competent body under the Data Governance Act, and the related need to develop an effective system of mandatory requirements and external oversight of public sector digitalisation processes, specially to constrain CPBs’ (unbridled) digital regulatory power.

The full working paper reference is: A Sanchez-Graells, Albert, ‘Competition Implications of Procurement Digitalisation and the Procurement of Digital Technologies by Central Purchasing Bodies’ (March 2, 2023), Available at SSRN: https://ssrn.com/abstract=4376037. As always, any feedback most welcome: a.sanchez-graells@bristol.ac.uk.