8 December 2016

More clarity on allocation of limited permits

The Dutch Council of State has set out general rules for the allocation of limited permits by public authorities in a recent case involving gaming machine permits. These rules are: 1) limited permits may, in principle, not be granted for an unlimited period of time, and 2) the issuing authority must make an appropriate disclosure about: the availability of the limited permits; how they are allocated; when an application can be made; and what the selection criteria are. Competition may be restricted, but not completely eliminated.

This ruling clarifies the grounds on which companies can challenge the granting of a limited permit to a competitor. But it is also important for those receiving a limited permit to monitor if the permit procedure meets the requirements set by the Council of State. This way, the risk of the permit being annulled can be reduced.

Below are links to the Council of State ruling and the accompanying press release (in Dutch only).