Hello, Let say I have 3 applications A, B and C calling each other like this A->B->C within the same API. I understand that the provider test is to check if the provider B implementation complies with the pact generated by the consumer A and since we ae testing implementation, we need the B running with its implementation. However the provider B is also a consumer of provider C. Does it mean the provider test of B also need C running with its implementation?

You should stub C out when you run the B provider test, and then write a separate set of tests for B->C