Summary
Standing to challenge a procurement award generally belongs to an unsuccessful bidder with an interest in obtaining the contract itself. Sub-contractors, sub-sub-contractors and suppliers ordinarily have no such standing. A non-bidder may qualify only in an exceptional case, such as where discriminatory tender requirements made bidding impossible, and the challenge must be made promptly.
Where domestic regulations implement EU procurement remedies, they should be interpreted purposively and consistently with EU law unless deliberate expansion is demonstrated. The definition of “economic operator” in the Concession Contracts Regulations 2016 did not widen standing beyond the relevant candidates and tenderers. The GPA did not cover this lottery-services concession.
Factual background
The claimants challenged the award of the Fourth National Lottery Licence to Allwyn Entertainment Ltd. None of the IGT claimants submitted a bid. Some were proposed key sub-contractors to Camelot UK Lotteries Ltd, an unsuccessful bidder; one was a proposed sub-sub-contractor; and another had pre-qualified but withdrew before submitting a tender.
The judgment concerned a preliminary issue ordered by O’Farrell J. It addressed whether the claimants were entitled to bring proceedings under the Concession Contracts Regulations 2016, whether the domestic regulations had widened the EU-law position, whether the claimants were “economic operators”, and whether the GPA applied to the United States claimant.
Held
- Standing. The preliminary issue was determined in favour of the Gambling Commission and Allwyn. None of the IGT claimants had standing to challenge the procurement award. The claim therefore could not proceed, with consequential matters to be dealt with separately.
- EU-law position. Article 1(3) of the Remedies Directive concerned a person having an interest in obtaining the particular contract, not merely an interest in the procurement’s outcome or in supplying a bidder. The ordinary position was therefore confined to unsuccessful bidders. Grossmann Air Service Bedarfsluftfahrunternehmen GmBH & Co v Austria (Case C-230/02) and Amt Azienda Trasporti e Mobilita v ATPL Liguria (Case C-328-17) recognised only a narrow exception where discriminatory tender requirements made a tender impossible or pointless. Any such challenge had to be brought at the appropriate early stage.
- Domestic implementation. Applying Brent LBC v Risk Management Partners Limited [2011] UKSC 7 and EnergySolutions v Nuclear Decommissioning Authority [2017] UKSC 34, the court held that the CCR16 had to be construed purposively against the EU-law background. The explanatory material showed no intention to gold-plate the remedies regime or enlarge standing. The definition of “economic operator” therefore had to be read consistently with the Remedies Directive.
- Independent domestic construction. Even without EU law, “offers” referred to an offer to the contracting authority, “services” referred to the services being procured as a whole, and “on the market” did not include every entity supplying a component part. Regulations 47 and 48, concerning notices and standstill, and regulation 42, treating subcontractors separately, confirmed that wider interpretation was unworkable.
- Application. C1 was a parent company which offered no relevant services. C3 and C5 were subcontractors. C4 withdrew before tendering and did not fall within the Grossmann exception. C6 was a sub-sub-contractor. None was an economic operator owed the relevant duty.
- GPA. The alternative argument concerning C3 also failed. The procurement was for lottery services through a services concession. The GPA schedules did not cover lottery services or services concessions, so regulation 51 imposed no duty towards C3.
The court’s approach to earlier authorities
Available to signed-in members.
Appellate history
No appeal was involved. The preliminary issue had been ordered by O’Farrell J at a case management conference on 3–4 May 2023.
Key cases cited
28 authorities cited.
- R (on the application of O (a minor, by her litigation friend AO)) v Secretary of State for the Home Department [2022] UKSC 3
- Nuclear Decommissioning Authority v EnergySolutions EU Ltd [2017] UKSC 34
- The United States of America v Nolan [2015] UKSC 63
- The Manchester Ship Canal Company Ltd and another v United Utilities Water Plc [2014] UKSC 40
- Brent London Borough Council and others (Harrow London Borough Council) v Risk Management Partners Limited [2011] UKSC 7
- Regina v. Montila and others (Appellants) (On Appeal from the Court of Appeal (Criminal Division)) [2004] UKHL 50
- Westminster City Council v National Asylum Support Service [2002] UKHL 38
- R v Secretary of State for the Environment, Transport and the Regions, Ex p Spath Holme Ltd (Spath Holme Ltd, Ex p) [2001] 2 AC 349
- Olorunfunmilayo Oluwaseun Akinsanya v Secretary of State for the Home Department [2022] EWCA Civ 37
- The Good Law Project (R on the application of) v The Secretary of State for Health and Social Care [2022] EWCA Civ 21
- NTN Corporation & Ors. v Stellantis N.V. & Ors. [2022] EWCA Civ 16
- Aspinalls Club Ltd v Revenue & Customs [2013] EWCA Civ 1464
- Chandler, R (on the application of) v Secretary of State for Children, Schools and Families [2009] EWCA Civ 1011
- Flora v Wakom (Heathrow) Ltd [2006] EWCA Civ 1103
- Oakley Inc v Animal Ltd & Ors [2005] EWCA Civ 1191
- Boxxe Limited v The Secretary of State for Justice [2023] EWHC 533 (TCC)
- CONSULTANT CONNECT LIMITED v NHS BATH AND NORTH EAST SOMERSET, SWINDON AND WILTSHIRE INTEGRATED CARE BOARD & Ors [2022] EWHC 2037 (TCC)
- Sysmex (UK) Ltd v Imperial College Healthcare NHS Trust [2017] EWHC 1824 (TCC)
- London Borough of Islington v The Unite Group Plc [2013] EWHC 508 (Admin)
- Word Perfect v The Minister for Public Expenditure and Reform [2022] IECA 131
- Payzone v National Transport Authority [2021] IEHC 212
- Copymoore Limited & Ors v The Commissioner of Public Works in Ireland [2013] IEHC 230
- Wall AG v La ville de Francfort-sur-le-Main [2010] EWR 1-02815
- Kammins Ballrooms Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850
- Grossman Air Service v Republik Österreich Case C-230/02
- Amt Azienda Trasporti e Mobilita v ATPL Liguria Case C-328-17
- Makedoniko Metro and Michaniki AE v Elliniko Dimosio Case C-57/01
- ISE v Stadt Kolnn Case C-796/18
Sign in to see how the court treated each authority. A free account is enough.
Cases citing this case
6 later cases · 3 positive · 3 caution
Most senior citing decisions:
- Lancashire County Council v Brookhouse Group Limited [2024] EWCA Civ 717 distinguished
- CR Construction (UK) Limited v Barclays Bank PLC (Costs and Stay) [2026] EWHC 228 (TCC) explained
- Siderise Insulation Limited, R (on the application of) v The Mayor and Burgesses of the Royal Borough of Kensington & Chelsea [2025] EWHC 1178 (Admin) applied
- Oracle Security Services Limited v Barts Health NHS Trust & Anor [2024] EWHC 1201 (TCC)
- Teleperformance Contact Limited v The Secretary of State for the Home Department [2023] EWHC 2481 (TCC)
- Rabbi Gabriel Kanter-Webber v The Information Commissioner & Anor [2025] UKUT 171 (AAC)
Sign in for the full treatment table. A free account is enough.