ACM closes investigation into an international software company

The Netherlands Authority for Consumers and Markets (ACM) closes its investigation into a large, internationally operating software company in the business market. ACM investigated whether the company abused its dominant position, and, as such, harmed buyers. However, the investigation has yielded insufficient evidence to establish a violation. ACM therefore closes the investigation.

The investigation into this company focused on the prices and conditions of software services. ACM had serious indications and reports suggesting that these prices and conditions were unreasonable for commercial buyers in the Netherlands. However, ACM’s investigation has yielded insufficient evidence.

Businesses with dominant positions cannot charge unreasonable prices and set unfair conditions

ACM emphasizes that businesses with dominant positions have a special responsibility. A business has a dominant position if it is able to act independently from buyers and competitors, for example, because the business makes it difficult for buyers to switch to competitors. This can be the case, for example, for software suppliers because of certain technical integrations, contractual limitations, or high switching costs.

Businesses are allowed to have a dominant position, but they cannot abuse such a position. Abuse may entail, for example, charging unreasonable prices or setting unfair conditions, because this leads to higher costs for their buyers and, ultimately, to higher prices and less innovation for consumers.

The digital economy

ACM ensures that markets remain fair and open, so that businesses are able to compete with each other on price, quality, and innovation. When receiving reports that a business abuses its dominant position, ACM can conduct an investigation and take action. The digital economy is one of ACM’s key priorities, since individuals and businesses are more and more dependent on digital services.