NMa Withdraws Conditions Attached to the Acquisition of OZ by CZ

The Netherlands Competition Authority (NMa) has withdrawn its licensing decision in which the regulator attached conditions to the acquisition of the health insurer OZ by CZ. This means that the merger is permitted and that the merged health insurers are no longer obliged to comply with the conditions. These conditions related to the provision of national policies by CZ/OZ.

NMa's decision is a result of a ruling by the Court of Rotterdam of 7 December 2005. In the ruling, the Court overturned NMa's decision in which the regulator stipulated that the parties required a licence for the acquisition, due to the effects which the merger could have on competition. The ruling of the Court makes it clear that NMa was only authorised to assess the proposed merger of the private insurance and supplementary insurance activities of CZ and OZ and not its health insurance fund activities. The Court concluded that in accordance with applicable legislation, the health insurance funds were not undertakings regulated by NMa. NMa will not appeal against this judgment.

As of 1 January 2006, when the health insurance funds ceased to exist, due to the introduction of the new health insurance system, the health insurers operate as undertakings and competition regulation will apply in full. The regulation of mergers in the healthcare sector is important to prevent the emergence of strong market positions which may obstruct competition in the healthcare sector.