Manager change raises questions about the allocation of EU satellites

The Bremen company OHB system has won a stage in the legal dispute over the allocation of new EU satellites. The EU’s court must again decide on the legality of the award because it did not check decisive aspects in its judgment, the European Court of Justice (ECJ) judged. The EU Court must better examine the role of a senior employee who switched to competitor during the award of OHB system.

Specifically, it is about a tender for the EU satellite project Galileo. The EU Commission responsible for the award made three companies in the closer selection: OHB System, Airbus Defense and Space (ADS) and Thales Alenia Space Italia. The two competitors finally received the contract of 1.47 billion euros because OHB did not submit the cheapest offer. The Bremen-based company fought the decision without a decision before the EU Court before the ECJ appealed.

Advantages possible by changing the manager

The judges at the ECJ pointed out that OHB had already informed the Commission during the award that their senior manager had switched to the competitor AdS for the operational business – in the responsible position for the Galileo offer.

The Brussels authority must ensure the most fair competition in all sections of the award, according to the judgment. It could not be ruled out that ADS has received illegal advantages due to the change of manager.