Dutch municipality De Marne competes unfairly with other marinas

The municipality of De Marne in the north of the Netherlands fails to include all costs in its tariffs for marina berths. As a result thereof, it competes unfairly with commercial marinas. This is not allowed under the Dutch act on competitive neutrality, called the Dutch Act on Government and Free Markets. The Netherlands Authority for Consumers and Markets (ACM) has come to this conclusion after conducting an investigation.

De Marne does not include all costs in its tariffs

ACM has established that the municipality of De Marne fails to include all costs in the tariffs for marina berths. The costs are much higher than the revenues from berthing charges. The municipality has acknowledged this, too. As such, De Marne disrupts competition with commercial marinas.

De Marne has stated that it will soon pass a resolution declaring that it runs a number of marina berths as a public-interest activity. The Dutch Act on Government and Free Markets will then no longer apply to these berths. With regard to another marina, the municipality is currently looking into the option of passing on the integral costs. If the municipality decides to do so, the Dutch Act on Government and Free Markets will no longer be violated.

A comparison with nearby marinas alone is not enough

ACM has found that many municipalities base their marina tariffs on a comparison with tariffs of nearby marinas. However, a comparison does not say anything about whether or not the tariffs include all costs. Anita Vegter, Member of the Board of ACM, explains: “Municipalities should check first whether they have included all costs in their tariffs. After that, they can compare their tariffs with those of nearby marinas. They can still adjust their tariffs afterwards, as long as they include all costs.”

Dutch Act on Government and Free Markets

Government organizations are allowed to offer products and services on the market. If they do, they will have to play by the rules though. Those rules are to protect commercial businesses against unfair competition by government organizations. For example, the Dutch Act on Government and Free Markets mandates all municipalities to include in their tariffs all costs associated with offering their products or services. This requirement does not apply if a municipality has decided that its activities are considered public-interest activities. In such cases, the Act does not apply.