NMa Netherlands Competition Authority

In order to protect competition in the Netherlands, the NMa carries out various activities.

If companies conclude agreements on, for example, prices or distribution areas, it constitutes as a cartel. Cartels can result in higher prices or reduced consumer choice. The NMa takes action if companies form a cartel. By conducting investigations, we are able to track down cartels. Alternatively, the NMa might also track down a cartel following a tip-off, or if a company itself confesses its participation in the cartel.

• Anti-cartel enforcement

Companies that enjoy very strong positions on a market (called ‘a dominant position’) are not allowed to abuse such positions. This may include preventing competitors from entering the market, treating similar buyers differently, or charging high tariffs (or even too high tariffs). If an abuse has been established, the NMa can take actions.

• Abuses of dominant positions

Companies that do not comply with the Dutch Competition Act commit an offense. Such offenses carry sanctions, meaning punishments. Violating companies are usually imposed a fine. The NMa is authorized to set the fines’ levels. The level of a fine depends on, among other things, the company’s turnover.

When two or more companies decide to become a single company, it is considered a merger. Alternatively, one company could acquire another company. Mergers and acquisitions are called ‘concentrations.’ Concentrations may result in one company becoming that strong on a market that other companies are left with few opportunities, and that buyers are left with few choices. The NMa assesses whether concentrations are in accordance with the Dutch Competition Act.

• Concentration control

Having each and every market work well is not possible however. Examples include the rail network and energy network, where certain companies have so-called ‘natural monopolies’. In these markets, there is room for only one provider of a rail network or power grid. Having multiple, competing rail networks or power grids next to each other would be quite redundant.

That is why the NMa forces them to operate as if they had competitors, by imposing rules on them. For example, we set the tariffs that network operators are allowed to charge consumers. Or we check whether the level of service of those companies is good. And we make sure that they allow other companies to use the network under fair conditions.

• Energy
• Transport

We want to know what is going on in the different industries and markets. We therefore carry out market research in the industries that we have oversight on. We thus keep ourselves informed on market developments.

Companies may not always be completely certain of whether their plans are allowed under the various laws the NMa enforces. They may wonder whether a license or exemption may be needed, whether a planned merger complies with relevant statutory regulations, or whether making arrangements with other companies constitutes a cartel. In such cases, companies can ask the NMa to issue a provisional decision. This is called an informal opinion.

• Informal opinions

Laws change as society changes. Business and economic developments, too, affect laws. We help policymakers change laws, and we help them draft new bills and regulations. In addition, we give the government advice on laws and regulations.

The NMa promotes competition, which in turn benefits consumers. In addition, we help consumers by educating them on their rights, for example, through consumer information portal ConsuWijzer (in dutch).

Competition is important not just in the Netherlands. In the European Union, too, consumers should be able to pay reasonable prices and have ample choice. That is why the NMa consults with similar authorities in the European Union and with the European Commission on European laws and regulations. In addition, European authorities can help each other in cartel investigations. This is the case if companies from different countries take part in a cartel.

• European cooperation

Companies must comply with the Dutch Competition Act. Sometimes, they violate that act on purpose. But companies do not always know what is and what is not allowed. That is why the NMa gives information about the Competition Act in speeches, conferences, press releases, etc. We do not give any advice to companies, we only educate them.