One of the most common questions I am asked when delivering training on technical specifications concerns a contracting authority’s right to restrict the origin of products being procured from certain countries. The question is whether such a restriction is lawful and what consequences it might entail.

Most contracting authorities assume that restricting the origin of products or their essential components would constitute a discriminatory condition and that no such restrictions can therefore be imposed—particularly where the tenderer is, for example, a distributor established in the European Union.

Elsewhere in Europe, however, there are examples of procurement procedures in which Chinese-made security cameras, components of solar panels and similar products have been prohibited. Such restrictions are usually motivated by national or economic security concerns, although sometimes also by considerations of quality.

⚖️ The Tallinn Circuit Court annulled the financial correction imposed on our client the City of Tallinn, finding that the requirement for a guarantee letter from a credit institution registered in Estonia in a construction procurement did not harm the EU budget. This was because participation of cross-border bidders was not excluded, and there was no genuine interest from such bidders. At the same time, the procurement ensured a significant level of competition. It is also important to note the court’s position that even if an infringement were established, the rate of the financial correction must be proportionate to the severity of the breach. In exercising its discretion, RTK must therefore assess on a case-by-case basis why a specific rate (e.g. 10% vs 5%) is applied.

🤩 We are very pleased that we had the opportunity to support the strong team at Estonian Centre for International Development (ESTDEV) in finding new partners.

‼️ This procurement was record-breaking for us as well — 63 tenders submitted across three lots, with 35 unique bidders. Together with ESTDEV’s highly capable team, we managed to complete the entire process in essentially two months, despite the long holiday period and the added complexity of verifying foreign bidders. Even more impressively — all of this was achieved without a single challenge!

📃 REVIEW OF THE PUBLIC PROCUREMENT DIRECTIVE: WHAT IS THE ROLE OF ICT PROCUREMENT?

The European Commission has published an article on ICT procurement on the Big Buyers portal. The article addresses the planned review of the European Union’s 2014 Public Procurement Directives and focuses on the role that information and communication technology (ICT) procurement could play in this process. It notes that ICT procurement is a rapidly growing and strategically important field through which the public sector can influence sustainability, innovation, and Europe’s competitiveness. At the same time, the current procurement framework does not always sufficiently support these objectives, and contracting authorities often feel that the rules are too rigid or complex.

📊 Overview: public procurement challenges in 2025

The 2025 statistics provide a clear picture of the main trends and focal points in public procurement dispute practice.

✨ The Think Tank took place again! ✨

The Think Tank organized by Law Office Matteus was held last week, and for the first time we brought both contracting authorities and tenderers together around the same discussion table.

The topic was an engaging one: we discussed the limits of clarifying tenders in public procurement and examined various specific cases. Taking a practical approach, we worked through different scenarios and shared experiences from both perspectives.

📢 The ninth edition of Law Office Matteus’ Procurement Radar has been published – covering everything that has appeared on our public procurement radar.

✨ The first month of this year has been a busy one for VAKO and the courts. This issue of Procurement Radar brings you three judgments of the European Court of Justice, two circuit court decisions, one administrative court judgment, and 16 VAKO decisions, along with news on legislative amendments, reading and listening recommendations, and other interesting updates.

⚖️ The European Court of Justice clarified that different companies within the same group are separate tenderers rather than one single tenderer, and further specified how to interpret the calculation of activity percentages of a local authority or state-owned company under the in-house transaction provision. VAKO issued several decisions concerning abnormally low tenders.

📢 We are pleased to share that Merily Tamm and Kadri Matteus are participating in the Exclusive Roundtable organized by Addenda, which brings together specialists in their field to discuss current topics and share practical experiences.

Addenda roundtables are known for their substantive discussions and interactive format, where participants can actively contribute, exchange experiences, and find new solutions to complex issues. This format creates a valuable opportunity for learning and professional development, while helping participants stay up to date with the latest developments in the field.

Matteus Law Firm’s partner Kadri Matteus shared her thoughts ahead of the holidays on how to participate in court proceedings in a conscious and professional manner. Read more.

The October edition of HankeRadar brings you: 1 Supreme Court ruling, 6 administrative and circuit court decisions, and 13 Public Procurement Review Committee (VAKO) decisions — plus practical procurement hacks, a call to get the new Commented Edition of the Public Procurement Act, and an overview of the European Parliament’s resolution on the future of public procurement in the EU.

📖 We contributed as authors to the creation of the new “Public Procurement Bible.” 📖

🌟 We kicked off the new business season together with our valued corporate clients and partners.

I wrote the post to spark a discussion about what makes for excellent public procurements in the ICT sector.

🔍 Important Amendments to the Public Procurement Act (PPA) – What You Need to Know

Starting from July and September 2025, several amendments to the Public Procurement Act (PPA) will enter into force, impacting both contracting authorities and tenderers.
The changes stem from amendments to the Competition Act, the State Secrets and Classified Information of Foreign States Act, and the State Fees Act.

📢 PUBLIC PROCUREMENT TREFF IS BACK!

🔎 NEW! HankeRadar Newsletter by Matteus  Law Firm 📬
Would you like to stay up to date with the latest court practice, legislative changes, key positions, and developments in the field of public procurement—without having to constantly monitor multiple information sources yourself?

Subscribe to HankeRadar, our expert-curated newsletter, and get all the essential updates in one place—clear, concise, and straight to your inbox!

European Parliament and Council Regulation (EU) 2024/1781, also known as the Ecodesign Regulation, is an important step in promoting environmental sustainability and circular economy principles within the European Union. This regulation, which came into effect on July 18, 2024, expands ecodesign requirements to nearly all physical products, including steel, aluminum, textiles, tires, furniture, and chemicals. Currently, the European Commission has not yet issued specific guidelines for procurers regarding this regulation, so it is crucial to remain alert for when the relevant guidelines will be finalized. 🌿

At the beginning of March, we continued the Think Tank with our procurement clients. This time, we focused on the most relevant topic: the future of public procurement in Estonia and the EU.

We took a look at the results of the simplification project led by the Ministry of Finance and discussed the pros and cons of the proposed changes that have the greatest impact. Simplification as an objective is great, but in reality, it must also be understood that the more streamlined the regulation is, the more challenging its everyday implementation becomes. The proposal with the greatest impact from the simplification project is to eliminate the national threshold and allow simplified procurements up to the international threshold, as well as raise the public procurement thresholds. The Ministry of Finance is currently working on an implementation plan to move forward with the selected proposals, and by the end of May, we should see which actual legal changes can be expected.

A Chinese proverb says that a journey of a thousand miles begins with the first step. What steps did we take in 2024?

ICT tenders, with their unique characteristics, are very exciting. The government has several large competence centers where high-quality ICT tenders are conducted, but other procuring entities are sometimes also forced to dive into the complex world of ICT tenders. Therefore, it’s a good idea to approach an ICT tender with a well-thought-out plan.

In ICT tenders, there are many things that can go wrong, which can have a wide-ranging impact on the quality of national services, etc. When handling ICT tenders, it's always important to start with understanding which problem is being solved. However, we often see that procuring entities start with the question of how to conduct the tender. This starting point is not ideal because it assumes that the procuring entity already knows exactly what and how it needs to achieve. But is that always the case? I dare say that in the ICT field, it may not be, because ICT is creative.

We invite you to our client event on November 14, 2024, from 10:00 to 11:30 – Public Procurement and Collaboration Between Procurers and Suppliers.

The Public Procurement Act allows entrepreneurs to participate in tenders with the help of others, for example, through joint bids or subcontracting. One entrepreneur can "borrow" another company's resources to meet the qualification requirements set in the tender, but this right is neither absolute nor unlimited. It is also possible to collaborate on tenders, but it's important to remember that submitting a joint bid could also be considered prohibited cooperation under competition law.

We will share valuable advice on the permissibility and formalization of cooperation, including when it is advisable to collaborate as joint bidders or subcontractors, and what to consider when borrowing "resources" within group companies.

Registration link.

On Thursday (October 3rd), we kicked off the new season of the Public Procurement Think Tank with an opening event at our new office in Skyon. We discussed reliance on third-party resources and the associated legal and practical issues.

Several of us shared interesting experiences and insights on how suppliers have approached this reliance. We also tried to collectively find solutions to borderline situations, talking about things as they really are.

🏆 In the fall, we always count our chickens, and Who's Who Legal released the results for this year's Government 2024 category on Friday. I'm very grateful to my clients and competitors for the recognition once again this year! :) "WWL: Government highlights the top lawyers worldwide for public procurement matters." The entire list provides a great overview of the top public procurement lawyers in Estonia. 👏

Read more: Who’s Who Legal: Government 2024 Rankings

But what exactly are lawyer rankings and recognitions like Who’s Who Legal, Legal500, and Chambers? These are legal ranking agencies that collect feedback from clients and market participants to determine who are the best lawyers and firms in their respective fields. While Legal500 and Chambers focus more on firm rankings (though Legal500 is increasingly rating individual lawyers as well), Who’s Who Legal specializes in evaluating individual lawyers, not firms.

Kadri wrote an opinion piece for ERR on mitigating security risks in public procurement in light of the Ministry of Finance's new guidelines. In summary, she points out that the Public Procurement Act, which regulates the procurement of services essential for vital services, doesn't mention security considerations as something that should take priority over promoting competition. Perhaps it's time to reconsider priorities and reframe national security protection as an important principle, alongside protecting competition and ensuring equal treatment. She is confident that these principles can coexist peacefully without threatening each other.

Read the article here: Kadri Matteus - Mitigating Security Risks in Public Procurement.

A New Business Season Begins – and So Do the Conferences!

On November 6, Addenda will host its annual Public Procurement Conference, where I’ll kick off the day with an overview of the most important rulings from the European Court of Justice over the past year. Every procurement lawyer should stay updated on these cases — and isn’t it nice when someone brings the key takeaways straight to your table? :)

Other topics worth mentioning:

• Mario Sõrm and Kadri Härginen will dive into the nuances of negotiated procedures without prior publication,

• Mart Parind promises a thought-provoking session on suppliers’ evergreen concerns,

• The conference will be moderated by Professor Mari Ann Simovart from the University of Tartu.

There are many more exciting topics on the agenda, so make sure to register for the conference, and see you on November 6!

Elering has, for the first time, announced a public procurement for the acquisition of up to 500 megawatts (MW) of generation and storage capacities from the market, which are necessary for the independent frequency control of the electricity system.

We assisted the City of Viljandi in signing a contract that ensures year-round maintenance of Viljandi's streets for the years 2024-2028. The maximum contract value exceeds 5 million euros.

Our work covered the entire public procurement process, including drafting the contract in a way that increased competition compared to previous tenders. Our goal was to reach an efficient and smooth agreement. We also completed all necessary procedural actions in the public procurement register.

Just before the start of summer, Kadri and Merily Rool will be discussing Dynamic Procurement Systems (DPS) and how they differ from framework agreements at the spring Public Procurement major event, Public Procurement Treff.

In the presentation, we will explore the theoretical framework of DPS, illustrated with examples from practice both from us and other parts of Europe. What are the advantages and developments of DPS, and what problems could DPS solve for the procurer? Is DPS attractive to suppliers, and have there been any challenges in practice when using DPS?

The Public Procurement Treff will be held for the tenth year, gathering hundreds of the most prominent professionals in the field! The largest procurers in Estonia and the most renowned procurement specialists will be there.

For more information and registration: https://www.addenda.ee/riigihangete-treff2024

In March, we held a Think Tank focused on strategic procurement. During the session, we discussed the six pillars of sustainable public procurement – reliable, environmentally friendly, socially responsible, innovation-supporting, reducing national security risks, and reasonable. Every public procurement should fulfill the first and last pillars, and there is also plenty of room to promote the other values.

On March 20, 2024, we will take a broader look at strategic procurement, including the current challenges of sustainable public procurement across the European Union.

We will be joined by guest speaker Tarmo Kiivit, Partner at AS Helmes, who will share insights on sustainable IT procurement from a business perspective.

On January 30th, another Procurement Think Tank took place, with the focus this time being on amending procurement contracts.

What contracting authority has not at some point wondered whether and how it is possible to amend a procurement contract considering regulatory constraints? Absolutely all of them! Therefore, there are often more questions than answers, and it's good to be able to discuss them together. We discussed recent court decisions and practices regarding amending procurement contracts from the perspective of the participating institutions.

In November 2023, I attended the Estonian Public Procurement Conference and presented an overview of the European Court of Justice and General Court decisions in the field of public procurement from the previous year. The annual conference is a good opportunity to see familiar faces, meet new ones, and stay informed about developments in the field.

While the European Court interprets procurement directives mainly through preliminary rulings (usually recognizable by the letter "C" in the decision), it is also worth keeping an eye on General Court decisions (starting with the letter "T"). Although the General Court resolves procurement disputes involving EU agencies under the financial regulation, the court has found that when the regulation is the same as in the directive, the Court of Justice's decisions on interpreting the directive are taken into account and vice versa.

Here are some key takeaways from this year's decisions made before November 1, 2023:

In October, the first Public Procurement Think Tank was held, targeting clients from the office of procurers, with the following central themes:

• Relying on indicators of another person;
• Integrity of procurement documents - what is actually needed, and how much of the work done by the procurer is useless or duplicative, as the law already ensures it;
• Selection of compliance conditions in the Public Procurement Register.

In October, the first Public Procurement Think Tank aimed at our office clients took place, focusing on the following topics:

• Relying on indicators from another person;
• Completeness of tender documents - what is actually needed and how much of the procurer's work is redundant or duplicative because the law already ensures it;
• Selection of compliance conditions in the Public Procurement Register.

On October 13, 2023, I chaired a panel on fair trial issues in administrative court proceedings at the Judicial Procedure Conference led by the Supreme Court. Our panel delved into the pillars of fair trial and procedural transparency. Participating in the panel were Supreme Court justices Nele Siitam and Julia Laffranque, a judge from the Tallinn Circuit Court and professor of administrative procedure at the University of Tartu, Villem Lapimaa, and Triin Kaurov, partner at the law firm TGS.

In the organization of public procurement, there are structural problems that are surmountable but require broader discussion and awareness among all Estonian procurers. Violations of public procurement law are also a reason why structural funds often have to be repaid to the European Union, writes Kadri Matteus in a piece together with Marit Piirisaar.