The EC claims that the French laws give preference to existing concessionaires in competition for new concessions, and has decided to take the government to the European Court of Justice.
Specifically, the EC cited Article 29 of French Decree No 94/894, which it said grants preference to outgoing concession-holders. The legislation was enacted in October 1994.
The EC said the law was ‘likely to ensure that existing holders retain their concessions for an indefinite period, and it becomes extremely difficult if not purely theoretical for other operators to bid for such concessions’.
It added that 18 months ago the French government said it would amend the law. However, as the change was not implemented the EC has decided upon legal action.
