German firearms manufacturer Heckler & Koch has lodged a formal complaint with the Finnish Market Court, alleging that Finland's direct arms purchase from local manufacturer Sako Ltd, owned by Italy's Beretta, violates competition rules. Court documents, on August 8, reveal the brewing conflict between the German company and Finnish defense forces.
Heckler & Koch contends that the Finnish defense forces have breached both Finnish and EU competition regulations by entering into a decade-long agreement with Sako to acquire assault rifles and handguns. This agreement, established in March and jointly made with Sweden, has prompted Heckler & Koch to take legal action. The German company argues that the procurement deal effectively prevents other manufacturers from participating in tenders for handguns until 2053.
"The direct procurement in question means that the Finnish Defence Forces may not invite tenders for the procurement of handguns until 2053 and may acquire them from Sako," Heckler & Koch stated in its formal complaint.
This assertion references the three seven-year extension options outlined in the agreement between the Finnish defense forces and Sako.
Both Finland and Sweden are in the process of updating the weaponry for their respective armed forces. Finland seeks to modernize its arsenal, including its RK 62 and RK 95 assault rifles, primarily manufactured by Sako.
Similarly, Sweden aims to renew its armament, including the AK 4 and AK 5 rifles, with the former being a Swedish-manufactured version of a battle rifle produced by Heckler & Koch.
The decision of Finland and Sweden to jointly join the NATO military alliance last year, following Russia's conflict with Ukraine in February 2022, has intensified their mutual defense cooperation. This collaboration includes joint equipment acquisitions to enhance interoperability between the two Nordic nations.
In response to Heckler & Koch's complaint, Finland's defense forces defended their procurement process. They justified the decision by citing Finnish and EU exceptions to competition rules, emphasizing that the direct procurement was driven by national security interests.
"The procurement has been carried out as a direct procurement, so that the necessary damage repair capability, maintenance, and production know-how is available under all conditions within a certain response time," the Finnish defense forces explained.
They further noted that Sako is the sole industrial manufacturer of handguns in Finland with adequate manufacturing capacity.
Heckler & Koch GmbH declined to comment on the ongoing proceedings It remains unknown whether the company has also filed a similar complaint in Sweden. However, inquiries with the Swedish Market Court and Stockholm's Administrative Court revealed no existing complaints from the German arms manufacturer.
The outcome of this legal dispute will likely impact the arms procurement landscape and the future of Finnish defense acquisitions.
Follow Daryo's official Instagram and Threads pages to keep up to date on world news.
Comments (0)