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For decades, the European Union built its public procurement policy on the principles of openness and non-discrimination. But changing global circumstances and unequal negotiating positions with third countries have brought a new reality – the EU public procurement market is now strategically closing to suppliers from countries that do not offer comparable access to European companies.
IPI – A Tool for Negotiating Leverage
In June 2025, the European Commission adopted Commission Implementing Regulation (EU) 2025/1197, marking the first-ever use of the International Procurement Instrument (IPI) under Regulation (EU) 2022/1031 of the European Parliament and Council.
The aim? To prevent companies from third countries (specifically from the People’s Republic of China) from taking advantage of free access to EU public contracts while their own markets remain closed to European suppliers. Under this Implementing Regulation, all contracting authorities in the EU must exclude economic operators from the PRC from all public procurement procedures worth €5,000,000 (excluding VAT) or more, for all categories of medical devices covered by CPV codes 33100000-1 to 33199000-1.
The Kolin & Qingdao Judgments
The EU Court of Justice had previously already set this trend in motion with two important rulings: Kolin (C-652/22) and Qingdao (C-266/22). Key takeaway: Companies from countries with which the EU has no agreement ensuring reciprocal and equal access to public procurement markets (e.g., under the WTO GPA) do not enjoy a right to no less favourable treatment in EU public procurement. Contracting authorities may lawfully exclude or limit their participation if legislation or tender documentation so provides.
A Clear Message: The EU Market Is Not Automatically Open
The IPI serves as a political instrument, while the Kolin and Qingdao rulings provide legal confirmation: openness in public procurement is not an unconditional right, but the result of international agreements and reciprocity. Bottom line: The EU will now condition access to its public funds on equal access for its companies to foreign (third country) markets.
At ODI Law, we are closely monitoring these developments, helping our clients understand the changes and adapt their strategies to remain competitive in the evolving European legal and market landscape.