NMa: Liberal Professions and Tenders Important Themes in 2004
Liberal professions, tenders and procurement power will be important themes for NMa in 2004. In addition, NMa, as in 2003, will continue to pay attention to the energy sector, financial markets and the healthcare sector. The Director-General of the Netherlands Competition Authority (NMa), Mr P. Kalbfleisch, made this announcement today during the presentation of NMa's Agenda 2004. In determining its priorities, NMa consulted 'society'. It appeared from this consultation that there is support for NMa's choices.
NMa emphasises that the above-mentioned areas of attention do not necessarily imply a concrete suspicion that legal rules have been infringed. In deciding whether to pay special attention to a sector or theme, its social importance is relevant. NMa also considers whether a particular market structure can be expected beforehand to disrupt competition, for instance because of high barriers to entry and/or a lack of transparency.
On the energy markets, specific supervision is maintained by the Office for Energy Regulation (DTe), as a chamber of NMa. DTe focuses, in particular, on the wholesale markets for electricity. In its recommendations to the Minister of Economic Affairs, DTe will analyse developments on this market and indicate how competition in this market can be strengthened. DTe will also work towards further quality regulation of the electricity grids. In addition, DTe is focusing on the liberalisation of the market for small users as of 1 July 2004. Any problems relating to the liberalisation of the market will be dealt with. Of course, NMa can also intervene in the energy markets on the basis of the Competition Act.
The financial sector plays a central role in the Dutch economy. Parts of the sector are characterised by a high degree of concentration, a considerable lack of transparency and cross shareholdings. This observation and the importance to the consumer of the proper functioning of the payments market have resulted in the decision to analyse this sector further.
In the healthcare sector, the careful introduction of regulated competition is underway. NMa has applied the Competition Act in this sector and will also do so in 2004. In the past week, two position documents on the market for exceptional healthcare (governed by the Exceptional Medical Expenses Act (AWBZ)) and competition in the hospital sector were published.
The markets in which the liberal professions operate have traditionally been strongly regulated and are often characterised by high barriers to entry. In addition, the service provider often has a considerable information advantage over the customer. NMa can promote competition within the liberal professions by applying the Competition Act.
In 2004 NMa will pay specific attention to markets where supply and demand meet through tenders. In 2002 and 2003, NMa paid considerable attention to tenders in the construction industry. It appeared from this that factors existed which increased risk. Tenders in the construction industry continued to demand attention, but NMa will broaden its attention to other markets in which tenders play a central role.
In 2004 NMa will also give attention to the theme of procurement power. Procurement power exists where the purchasing company has considerable power relative to suppliers, for instance suppliers in the small and medium enterprise sector. In doing so, the extent to which procurement power could result in an infringement of the prohibition on the abuse of a dominant position (section 24 of the Competition Act) will also be analysed.
These areas of attention provide NMa with insight into certain sectors and themes. To ensure that markets operate well, NMa intervenes, where necessary. Of course, NMa makes choices in this regard as it cannot do everything at once. How to decide on the cases in which NMa should take action is an important issue. NMa applies a number of criteria to determine which possible infringements are investigated and eliminated. The criteria applied in this regard are the economic importance of the infringement, its importance to consumers, the seriousness of the infringement and whether action taken by NMa would be effective and efficient.
NMa-agenda 2004 en reacties