European legislation
The European Union grants its citizens freedom of movement for goods, services, capital and people. That means that products from other EU countries can be sold in the Netherlands, and that Dutch products can be sold in the rest of Europe, too. Furthermore, Dutch citizens can work in other EU countries, and other EU citizens can work in the Netherlands. Competition is thus a cross-border affair. That is why fair competition is important in the European Union as well.
Oversight by the European Commission
Oversight is necessary in order to guarantee equal opportunities for companies in the European Union. This is the job of the European Commission. The European Commission is authorized to intervene when companies and countries do not comply with European competition rules. Oversight activities of the Commission concerns state aid regulations.
This calls for cooperationbetween the Commission and the individual member states, including the Netherlands.
European rules
The website of the European Commission lists all the European competition rules. The most important ones are Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) - formerly Articles 81 and 82 of the EC Treaty. In addition, the website includes rules on:
- Horizontal agreements – for example, agreements between two dog food producers
- Vertical agreements – for example, an agreement between a dog food producer and a supermarket
- Concentrations – for example, one dog food producer takes over another dog food producer, resulting in fewer production plants, thereby reducing competition
- Abuse of dominant positions – for example when, as a result of concentrations, only very few dog food production plants remain, which abuse their positions and charge high prices for dog food
On the Commission’s website, you will also find rules for specific industries, including agriculture, energy, postal services, telecommunications, and transport.
European rules on concentrations
When companies expand due to acquisitions, mergers or joint ventures, it constitutes a concentration. Concentrations are subject to European rules. A concentration cannot go through if it impedes competition by the creation or strengthening of a dominant position. The rules of the European Competition Authorities (ECA) and the EC Merger Regulation (139/2004) apply to concentrations.
Impact of Europe on Dutch competition
European competition law became reality in 1958 with the ratification of the EC Treaty. Its Articles 81 and 82 contained the prohibition of anticompetitive agreements and of abuses of dominant positions. These became Articles 101 and 102 after the EC Treaty was changed into the Treaty on the Functioning of the European Union (TFEU). In addition, the Merger Regulation (Regulation 139/2004) has set rules on mergers and acquisitions that may impede competition.
The Dutch Competition Act, in existence since 1998, is largely based on European competition law. Developments and trends in Europe are therefore extremely important to the NMa. The policy choices that the Directorate-General Competition of the European Commission makes have a major impact. In addition, the rulings that cover competition issued by the European justices on the European Court of Justice in Luxembourg are especially important to the way competition is dealt with in the Netherlands.
