Hannes Snellman Advised a Financial Services Entity in Precedent-Setting Ruling by the Supreme Administrative Court of Finland

Hannes Snellman successfully represented a financial services entity in landmark public procurement proceedings before the Finnish Market Court and in subsequent appeals to the Supreme Administrative Court of Finland.

The proceedings concerned two wellbeing services counties’ decisions to purchase patient insurance services, where the insurer was an in-house entity of the contracting partner. The Market Court ruled in favour of the financial services entity by declaring the agreements between the wellbeing services counties and the patient insurance company ineffective with the contract period ending nine months after the Market Court’s decision becomes final and ordering the counties to pay the state a penalty fee. The decisions of the Market Court were appealed by the wellbeing services counties, the publicly owned patient insurance company, and the contracting partner.

In its precedent-setting ruling (KHO:2025:82) of 18 December 2025, the Supreme Administrative Court confirmed that the arrangement fell within the obligation to arrange a public tendering competition, as it did not qualify as a valid transfer of authority or legally mandated cooperation or horizontal collaboration, setting an important precedent.

The Supreme Administrative Court dismissed the appeals and upheld the Market Court’s decisions. This means that the insurance services will be subjected to a public tendering competition, giving private entities a possibility to offer their services to the wellbeing services counties.