NMa Starts Accelerated Sanctions Procedure against 180 Installation Companies

The Netherlands Competition Authority (NMa) has started a sanctions procedure against approximately 180 installation companies. NMa suspects that these companies infringed the Competition Act from 1998 up to and including 2001. Installation companies are companies which construct and maintain mechanical engineering, electrical engineering and sprinkler installations.

NMa suspects these installation companies and parts of these companies of participating in prior consultation in groups of varying composition before subscribing to tenders. This system was aimed at dividing projects amongst the participants and coordinating their bidding behaviour. Of the approximately 180 companies on which a report has been drawn up, 30 of the companies notified NMa and appealed to the leniency programme. Evidence against the other companies has emerged from the information obtained from applicants for leniency.

It appears from the investigation that the installation engineering sector infringed the Competition Act in a structural manner and on a large scale. NMa's investigation is aimed at exposing cartel structures which existed. In addition, NMa aims to bring about a change of culture throughout the construction industry through the quick processing of the investigation and a quick sanctions procedure.

Accelerated sanctions procedure
As in the case of the imposition of sanctions on companies in the civil engineering and infrastructure sector, NMa has applied an accelerated sanctions procedure to installation companies on which a report was drawn up. NMa has opted for this approach to enable the companies to 'come clean' quickly. The installation engineering sector has declared that it wishes to appoint Mr J.C. Blankert as its attorney. He will present arguments on behalf of the companies, which are important in relation to the imposition of sanctions. To encourage companies to opt for the accelerated sanctions procedure, NMa will reduce the fines imposed on the companies which participate in this by 15%. With a view to the exceptional circumstances of this investigation, as in the case of companies in the civil engineering and infrastructure sector, NMa has adopted a supplement to the existing Guidelines for the Setting of Fines for the purposes of imposing fines on the installation companies. Ultimately NMa will impose a fine on each company on the basis of the contents of the report resulting from the investigation and the opinions presented.

Progress investigation construction industry
NMa aims to conclude the investigations and sanctions procedures in conjunction with each other and within the foreseeable future. The installation companies can now respond to the content of the report. After this NMa will take a final decision on whether an infringement has been committed and, if so, whether NMa will impose a sanction. The fines imposed on installation companies which cooperate in the accelerated procedure are expected in the autumn.

NMa expects to complete the investigation into the civil engineering and utility construction sector in the summer. In addition, NMa will complete investigations into other subsectors of the construction industry in the coming months. The construction industry has priority in 2005 within the framework of NMa's Agenda 2005. The approach chosen is consistent with NMa's mission to 'make markets work'.