ACM launches investigation into abuse of dominance by an international software company

The Netherlands Authority for Consumers and Markets (ACM) has launched an investigation into a large, internationally operating software company in the business market. ACM suspects that this company abuses a dominant position, resulting in buyers getting harmed. The suspected abuse concerns the pricing of certain software as well as the conditions that the company applies vis-à-vis buyers in the Netherlands. Buyers that are dependent on this software possibly pay too much or are confronted with unfair conditions. As a result, competition may be restricted, too.

Businesses cannot abuse their dominant positions

A business has a dominant position if it is able to act independently from buyers and competitors, for example, because buyers face difficulties switching to different suppliers. Businesses are allowed to have a dominant position, but they cannot abuse such position. That is prohibited under the competition rules. Abuse may consist of, for example, charging unreasonably high prices or applying unfair conditions to buyers. This can lead to higher costs for businesses and, ultimately, also 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 take action. The digital economy is one of ACM’s key priorities. This investigation ties into ACM’s efforts to ensure that markets in the digital economy work well, since more and more individuals and businesses are dependent on these services.

Next steps

ACM has conducted a dawn raid, has requested information, and, over the next few months, will assess whether this company has indeed violated the competition rules. In this process, ACM may also come to the conclusion that the law has not been violated. If ACM comes to the conclusion that the law has indeed been violated, the company will have the opportunity to tell its side of the story. Only then will ACM be able to impose any sanctions.

Submit a tip-off

Do you have any indications that a business is violating the competition rules? Please report it to ACM. You can do so by visiting this page: Tip off. You can also submit a tip-off anonymously.