NMa: Further Investigation Necessary into Acquisition of OZ by CZ

Following an initial investigation, the Netherlands Competition Authority (NMa) has concluded that a dominant position may arise or be strengthened by the merger of two health insurers, CZ and OZ, on the market for health insurance, in particular in the province of Zeeland and the western region of the province of Noord-Brabant. Competition may be restricted as a result. For this reason, NMa has informed both parties that a licence is required in order to realise this merger.

In its investigation, NMa concludes that the proposed merger will give rise to the largest health insurer in an area which covers the province of Zeeland and the western region of the province of Noord-Brabant. In its investigation, NMa took into account the introduction of the new Health Insurance Act [Zorgverzekeringswet (Zvw)]. As a result of this act, uniform health insurance will be introduced in the future for all residents of the Netherlands which will eliminate the distinction between people insured by health insurance funds and private insurance. The Health Insurance Act aims to contribute to bringing about a sustainable and affordable healthcare system in the future on the basis of competition. It appears from NMa's investigation that there is evidence that mergers, which result in strong regional market positions, can become a barrier to the emergence of competition at the national level.

If CZ and OZ apply for a licence, NMa is required to take a decision within 13 weeks on whether the merger is
allowed or not. In the licensing phase, NMa will carry out an in-depth investigation into whether, in terms of its geographical size, the market for health insurance under the Health Insurance Act will be a regional or a national market. In addition, NMa will investigate in more detail whether a dominant position may arise or be strengthened with regard to the procurement of healthcare offered on a regional market.