University of Tehran Public Law Studies Quarterly 2423-8120 Articles in Press 2026 03 21 Prohibiting Collusion in Public Procurement and its impact on Economic Efficiency Prohibiting Collusion in Public Procurement and its impact on Economic Efficiency 1 23 104166 10.22059/jplsq.2024.363475.3378 FA Zahra Babaie Ph.D. of Public Law, Department of Public Law, Faculty of Law and Political Science, Tehran University, Tehran, Iran Vali Rostami Prof, Department of Public Law, Faculty of Law and Political Science, Tehran University, Tehran, Iran Esmaeil Mostafaei .Ph.D. of Private Law, Department of Private Law, Edalat University, Tehran, Iran Journal Article 2023 08 31 Public procurement considers majority of public budget. Therefore, it is necessary to use this budget optimally. This article seeks to answer the question of how competition law can create a competitive market and help increase the efficiency and health of public procurement with the analytical-descriptive method. Competition law helps to increase the efficiency of public procurement by reforming the market structure and prohibiting collusion and forming cartels. Competition is a main principle to ensure the best value for money in government procurement. The tender is mainly aimed at selecting the most efficient contractor, conserving resources and reducing buyer costs; but most economic contractors are reluctant to do so. They prefer to work together and increase mutual benefit. Transparency in the awarding procedures facilitates corporate collusion; because cartels can easily identify and punish firms that have violated the compromise. Therefore, it is necessary to reduce the grounds for cartel formation and compromise between firms through competition law provisions, and to amend the public procurement law in order to increase competition and limit the number of restricted procedures so that the public buyer can use his budget more efficiently. Public procurement considers majority of public budget. Therefore, it is necessary to use this budget optimally. This article seeks to answer the question of how competition law can create a competitive market and help increase the efficiency and health of public procurement with the analytical-descriptive method. Competition law helps to increase the efficiency of public procurement by reforming the market structure and prohibiting collusion and forming cartels. Competition is a main principle to ensure the best value for money in government procurement. The tender is mainly aimed at selecting the most efficient contractor, conserving resources and reducing buyer costs; but most economic contractors are reluctant to do so. They prefer to work together and increase mutual benefit. Transparency in the awarding procedures facilitates corporate collusion; because cartels can easily identify and punish firms that have violated the compromise. Therefore, it is necessary to reduce the grounds for cartel formation and compromise between firms through competition law provisions, and to amend the public procurement law in order to increase competition and limit the number of restricted procedures so that the public buyer can use his budget more efficiently. https://jplsq.ut.ac.ir/article_104166_7465015f4620cae0312ac2b6444db868.pdf