Public enterprises hold a significant position in every economy, with the increasing trends of privatization primarily driven by legal and political impulses at the European level. The author points out that it is therefore even more important to establish clear framework conditions for public enterprises that delineate their areas of activity and regulate their relationship with private companies in competition. A consistent application of German constitutional law, particularly the fundamental rights as freedoms, dictates that public enterprises should only be assigned a secondary function. Their participation in economic activities is constitutionally permissible only when private companies are unable to adequately fulfill tasks related to the common good, and in light of the public sector's responsibility for the common good, milder means such as regulation should be considered.