receiving a complaint from the EU producers concerned, but it could also exceptionally do so on its
own initiative 15.
In accordance with existing rules on public procurement 16, Member States are encouraged to not
award contracts solely on the basis of the lowest price, but also to take into account quality in areas
such as security, labour and environmental standards. Moreover, they do not prevent Member States
from imposing or enforcing measures necessary to protect public security or essential security
interests. Tenders from bidders that do not have secured access to the EU procurement market
(based on binding international or bilateral free trade agreements covering public procurement) may
also be excluded. Member States may also under certain conditions exclude an economic operator
that could cause a risk to the essential national security interests. Furthermore, within the field of
defence and security, public buyers do not have to give access to the tenders to third country
operators.
Maintaining and further developing European capacities in the area of 5G and in particular in critical
parts of the value chain by leveraging EU Research & Innovation Funding programmes and
Industrial policy tools is a strategic risk mitigating measure addressing the risk of dependencies.
By supporting disruptive and ambitious research, innovation and deployment funding programmes,
such as Horizon Europe, Digital Europe Programme, and the Connecting Europe Facility (CEF) can
facilitate the emergence of European competitive sourcing options, especially as regards to
processors and critical software. The funding programmes also contain security-related provisions.
Moreover, linked to the EU’s state aid regime, IPCEIs (Important Projects of Common European
Interest) make it possible to bring together knowledge, expertise, financial resources and economic
actors throughout the Union 17, so as to overcome important market or systemic failures and societal
challenges which cannot otherwise be addressed. They are designed to bring together public and
private sectors to undertake large-scale projects that provide significant benefits to the Union and its
citizens.
Finally, other relevant or potentially relevant tools and frameworks at EU and national level
include data protection and privacy rules (in particular the General Data Protection Regulation and
e-Privacy Directive) 18, the Radio Equipment Directive 19, EU rules on export controls 20, requirements
applicable to critical infrastructures, as well as frameworks aimed at responding to cyber incidents
15 Anti-dumping legal instrument (Regulation (EU) 2016/1036), anti-subsidy legal instrument (Regulation (EU) 2016/1037), safeguards
(Regulation (EU) 2015/478).
E.g. Directive 2014/24/EU of 26 February, 2014 on Public Procurement; Directive 2009/81/EC of 13 July, 2009 in the fields of
defence and security, C(2019)5494 Guidance of 24 July, 2019 on the participation of 3rd country bidders and goods in the EU
procurement market.
17 Based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU) and C (2014) 188/02 on the criteria for
the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common
European interests.
18
Regulation (EU) 2016/679 on protection of natural persons with regard to the processing of personal data and on the free
movement of such data; Dir. 2002/58/EC on the processing of personal data & the protection of privacy in the electronic
communications sector.
19
Directive 2014/53/EU of 16 April, 2014 on the harmonisation of the laws of the Member States relating to the making available on
the market of radio equipment.
20
Regulation EC 428 2009 of 5 May, 2009 on a Community regime for the control of exports, transfer, brokering and transit of dualuse goods, and COM (2016) 616 proposal of 28 September,2016
16
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