As one competition ends, another could soon begin in Sanremo. Following the song contest, a new race may take place among economic operators vying for the rights to exploit the brand and organize the “Festival della Canzone Italiana.”
On December 5, 2024, a ruling by the Liguria Regional Administrative Court (TAR) established that, starting in 2026, the concession of the brand by the Municipality of Sanremo and the organization of the event can no longer be awarded through direct assignment (as has happened so far) but must be granted through a public tender. This means that RAI would have to compete with other operators to organize and broadcast the Festival.
If implemented, this ruling would mark progress in fostering competition within Italian public administrations, which often struggle to develop the necessary expertise to analyze markets and promote competition whenever possible, as a driver of innovation and value.
The European Union strongly encourages competition, making it a pervasive principle - though, as this case shows, its boundaries are not always easy to define. The outcomes are mixed: in some cases, renewing existing concessions seems the simplest route. The most evident example is that of beach concessions. The 2024 Competition Law, however, has mandated wider use of public tenders for highway concessions. In other sectors, such as training for public administration personnel, exclusive arrangements persist despite being difficult to justify.
Where market contestability exists - that is, when more than one operator can provide a service to the public administration - the EU considers public tenders the preferred approach. However, determining contestability requires a market analysis, for which administrations are not always equipped. A strategic approach to market openness, expertise, and time are needed - in short, more sophisticated public administrations. The result, however, is almost always the creation of public value, bringing benefits to institutions, the system, and citizens. A well-structured public tender can secure a higher price for the granting authority and/or better conditions for users. Most importantly, competition fosters innovation and, consequently, growth.
The ruling, by referencing the concept of economic gain for the concessionaire, argues that such an opportunity must be put up for tender. If a public tender were held, the Festival’s technical and organizational standards could improve, and/or the Municipality could gain greater financial benefits to reinvest in the community.
RAI has announced that it has appealed the TAR ruling to the Council of State. Based on the timelines of similar cases, a final decision could take about a year. Even sooner—within a month or two—the Council of State may issue a precautionary ruling temporarily suspending the TAR decision if it finds the appeal well-founded, to prevent irreparable harm to the parties involved. Regardless of the appeal's outcome, it is likely that the 2026 Festival will closely resemble the one just concluded.
Beyond competition, the TAR ruling also touches on intellectual property. RAI’s argument - rejected by the TAR - is that the “Festival della Canzone Italiana” brand, owned by the Municipality of Sanremo, is inextricably linked to the Festival’s format, which is owned by the State broadcaster. A format, if it has original elements, can be protected as an intellectual work. In this case, granting the brand would require joint approval from both the Municipality and RAI.
The music production and event organization company that initiated the legal challenge, Just Entertainment, has expressed interest in acquiring only the brand, potentially using it with a different format.
The ruling does not directly address broadcasting rights, which would remain under the control of the Festival’s organizer. However, if the Council of State upholds the TAR’s decision, the Municipality could attempt to include a clause in the public tender ensuring national broadcasting of Italy’s most popular festival—whether on RAI or a competing channel.
(Article by the SDA Bocconi Insight editorial team, based on interviews with the two professors.)
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