NMa: visible results increase confidence in competition enforcement

With today’s publication of its Annual Report, the Netherlands Competition Authority (NMa) announces the results of its oversight policy over 2005. The NMa chooses to operate transparently, providing insight into its work and results achieved. In so doing, the regulator wishes to involve society, and account for its activities. The way in which the NMa operates has been set out in the NMa 2005 Agenda, after consultations with lawmakers, academia, and the corporate sector. Various areas of attention, as designated in the Agenda, provide the backbone to the annual report.

'It is useful to explain our raison d’être as well as the effects of our actions from time to time,’ says Pieter Kalbfleisch, Chairman of the Board of the NMa, during the presentation of the 2005 Annual Report. He continues: 'In this respect, regulators may learn from one other, and may take up a joint course of action. Together, we could jointly draw up, as I call it, a Market Oversight Code. Such a code entails a set of principles regulating mutual cooperation. The benefits are clear-cut: by exchanging information whenever possible, regulators may be able to match the desires and interests of business owners, consumers, lawmakers, and scholars even better. This may also reduce the administrative burden. In that context, we will take the initiative, and will confer with our fellow regulators in the near future to take the first steps towards setting up a code'. In this way, the NMa takes a position in the debate on oversight in the Netherlands.

In 2005, the most important areas of attention were the construction industry, health care, energy, liberal professions, and the financial sector. One of the visible results for 2005 is the now completed investigation into various subsectors in the construction industry. The NMa aims to complete the majority of current fast-track sanction procedures, partly resulting from the investigation carried out in 2005, this summer. The regular sanction procedures will be completed before the end of the year. The NMa expects that some sort of intensive investigation will continue to be necessary.

In 2005, much effort was placed in making the work of the NMa visible to consumers too. For example, the administrative backlogs at large energy companies were eliminated in the course of 2005. Furthermore, the NMa this year will fulfill the desire of lawmakers for setting up a joint information portal, which will deal with consumer questions about competition, energy, telecommunication and other consumer-oriented issues. This portal will be jointly operated by the NMa, the OPTA (Netherlands Independent Post and Telecommunications Authority) and the Netherlands Consumer Authority (to be established soon).

In 2005, the NMa drew up 10 statements of objections on suspecting a violation of the Dutch Competition Act, one of which involved 700 undertakings. In 8 cases, fines were imposed, one case involving 345 undertakings (total fines amounting to EUR 141.2 million). Eighty merger and acquisition cases resulted in a decision. Many cases related to mergers in the health care sector. The Office of Energy Regulation (DTe), which is part of the NMa, issued 146 decisions and advised the Minister of Economic Affairs on 10 dossiers. DTe imposed 12 fines (amounting to a total of EUR 500,000), for instance on failing to comply with the obligation to offer electricity to the APX. In 2005, the year in which the Dutch Railway Act came into force, the Office of Transport Regulation reached an agreement with market participants on terminating established violations of this act as quickly as possible. Also, the Office of Transport Regulation advised the Minister of Transport, Public Works and Water Management on 5 dossiers in the field of transport. With regard to aviation (tariff regulation for Amsterdam Airport Schiphol) and pilotage services, legislation is currently being prepared.