NMa to Conduct Further Investigation into Institutions for the Handicapped

The Netherlands Competition Authority (NMa) has concluded after an initial investigation that as a result of the merger of two institutions for the mentally handicapped, Stichting Vizier and Stichting De Wendel, in the region of North Limburg, a dominant position may arise or be strengthened on the market for intramural care for the mentally handicapped. This may obstruct competition. For this reason, NMa has notified both parties that a licence is required for the realisation of this merger. NMa is of the opinion that a more in-depth investigation of the consequences of the proposed merger is necessary.

On the basis of the investigation carried out up until now, NMa is of the opinion that it is plausible that the market for intramural care for the mentally handicapped is not larger than the province of North Limburg. This can be concluded, for instance, from data relating to the origin of new clients of healthcare institutions in North Limburg and from data on the institutions for which new clients from North Limburg have a preference. The merger may result in a restriction of the freedom of choice of clients in North Limburg, since only one institution will remain as an alternative. This may mean that a dominant position will arise or be strengthened.

If both institutions apply for a licence, NMa will carry out a more in-depth investigation. In that case, NMa will investigate, for instance, whether a certain deterioration in healthcare provision will cause clients from North Limburg to resort to healthcare institutions outside North Limburg. Whether such a deterioration will result in the entry of healthcare institutions from outside North Limburg will also be ascertained.