Italian beach licenses must be subject to impartial and transparent tenders, the European Court of Justice said on Thursday in a written ruling that piles pressure on Rome to finally boost competition in the sector.
The licenses to rent out sun loungers and beach umbrellas are traditionally family-controlled and passed down from one generation to another in Italy, despite rival entrepreneurs saying they have been shut out unfairly from a major business.
After repeated delays, the concessions were meant to be put out to tender by 2024, but Prime Minister Giorgia Meloni has put this off by a year.
Parties in her conservative coalition have pushed for existing license-holders to keep their concessions, saying they have maintained low costs for beachgoers and prevented Italy's 7,500 kilometres (4,660 miles) of coastline from falling into the hands of big chains who might not respect local traditions.
However, the Luxembourg-based Court of Justice ruled that the licenses could not be automatically renewed. "The national courts and the administrative authorities are required to apply the relevant rules of EU law," it said.
The licenses are officially state owned but rarely come up for public bidding. In 2019, the government raised just 115 million euros from the sale of beach licenses, while the business itself is estimated to be worth some 15 billion euros annually, according to a study by the Nomisma consultancy.
