Abuses of dominant positions
Companies that fail to comply with the Dutch Competition Act are dealt with, for example, companies that enjoy dominant positions, and who abuse their positions. Having a dominant position means, for example, that a company is so large in a market that it barely faces competition, or is at least not bothered by competitors. Having a dominant position in itself is not prohibited, but abuse thereof is. If a large company abuses its dominant position, consumers will eventually have less choice, and will end up paying more. The NMa seeks to prevent that.
If a company is the only company in a market, or one of a few, customers are not inclined to leave or switch. Abuse of that dominant position may be a risk, such as unreasonable price increases. A company with a dominant position could also reduce prices below cost price in order to push competitors off the market. Or a company sets unreasonable conditions vis-à-vis its suppliers. Or a company could be guilty of tying, for example, by selling two completely unrelated products as a set. The company in question might be the only provider of one of the two products, but there may be other providers for the second product. By tying these two products, providers of the second product are practically eliminated.
The NMa receives information
There are many different ways in which the NMa gets its information about companies that have committed violations. We receive tip-offs, people file complaints, or a company confesses a cartel. But we also discover abuses of dominant positions by market research of our own.
Information analysis
When we obtain information, we want to know for certain what is going on. That is why we check tip-offs and complaints carefully. If we have any suspicions, we will further investigate the matter. Sometimes we do not do anything with information we obtain, because there may be other, more pressing matters, or because we do not have enough staff members at that point to further investigate the case. That is not to say we might come back to the case at a later point in time.
Investigations at companies
If we have strong suspicions, we could carry out investigations at a company’s premises. We gather evidence then. We ask questions and examine data that we find on the spot. We could also visit a company without advance notice. We do not disclose what companies we investigate, not even to other companies that are involved in a case.
Reports and fines
If we are of the opinion that a dominant position has been abused, we take further steps. The Competition Department draws up a report. The report and the entire dossier are handed over to the NMa’s Legal Department. The companies that are involved in the violation receive our investigative report. They are given the opportunity to respond thereto, either in writing or orally (during a hearing).
If the evidence is not refuted, the NMa can impose a sanction: a fine, an order subject to periodic penalty payments, a binding instruction, or a combination of any of these. The decision in which a sanction is imposed will be disclosed (in Dutch).
Objections and appeals against sanctions
If a company does not agree with the decision in which a fine was imposed on it, it can file an objection against it with the NMa. In cases of objections, the NMa will review the case a second time. If the NMa upholds the sanction in its decision on objection, the company that was sanctioned has the opportunity to appeal the decision with the District Court of Rotterdam. A last resort are appeal proceedings with the Dutch Trade and Industry Appeals Tribunal (CBb).
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