How the IPI Regulation Affects Access for Third Countries

On 29 August 2022, the so-called IPI Regulation (Regulation (EU) 2022/1031 of the European Parliament and of the Council) came into force. The regulation grants the European Commission the authority to restrict access to public procurement for suppliers, goods, and services from third countries.

Under the regulation, the European Commission is empowered to sanction third countries that hinder EU Member States’ access to public procurement (referred to as IPI measures). These sanctions primarily take the form of “score adjustment measures,” which reduce the likelihood of winning a procurement contract, or outright exclusion of bids. The mere threat of such sanctions is intended to proactively deter third countries from imposing barriers to participation in public procurement for EU Member States.

To date, only one investigation has been conducted by the European Commission under the IPI Regulation, focusing on medical technology products from China. According to a report published on 14 January 2025, the European Commission is considering adopting one or more IPI measures against China, which would make it more difficult for Chinese entities in the medical technology sector to access public procurement opportunities.

In light of the introduction of the IPI Regulation and the subsequent guidelines on its application presented by the European Commission, the Swedish Government proposed changes to national procurement laws on 23 January 2025. The aim is to clarify that certain EU provisions may take precedence over national legislation and to ensure that the application of the IPI Regulation’s procurement rules falls within the oversight responsibilities of the Swedish Competition Authority.

The proposed legislative changes, set to take effect on 1 July 2025, have now been submitted to the Council on Legislation for review.

Markus Garfvé

Jesper Linder