Fratelli Costanzo SpA v Comune di Milano
Local authorities are part of the state, and like national courts, they must apply the provisions of a directive that has direct effect and disapply conflicting national law.
Facts
Fratelli Costanzo, a construction company, submitted a tender to the City of Milan for building works for a football stadium for the 1990 World Cup. The city rejected its tender as abnormally low, under an Italian law that allowed tenders to be rejected automatically on that ground, without giving the tenderer a chance to explain. This was contrary to an EU directive on public works contracts.
Legal principle
The Court of Justice held that the city should have applied the directive and disregarded the conflicting Italian law. It said that, where the conditions for direct effect are met, all organs of the administration, including decentralised authorities such as municipalities, are obliged to apply the provisions of the directive. It would be contradictory to rule that individuals may rely on a directive in national courts, while holding that the administrative authorities are not obliged to apply it.
Related cases on direct effect of directives
- Becker v Finanzamt Münster-Innenstadt Case 8/81, [1982] ECR 53
- CIA Security International SA v Signalson SA Case C-194/94, [1996] ECR I-2201
- Dansk Industri (DI), acting on behalf of Ajos A/S v Estate of Karsten Eigil Rasmussen Case C-441/14, EU:C:2016:278
- Egenberger v Evangelisches Werk für Diakonie und Entwicklung eV Case C-414/16, EU:C:2018:257
- Faccini Dori v Recreb Srl Case C-91/92, [1994] ECR I-3325
- Farrell v Whitty Case C-413/15, EU:C:2017:745
- Foster v British Gas plc Case C-188/89, [1990] ECR I-3313
- Johnston v Chief Constable of the Royal Ulster Constabulary Case 222/84, [1986] ECR 1651
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