NMa Increases Effectivity Leniency Office

The Netherlands Competition Authority (NMa) has taken steps towards further increasing the effectivity of its Leniency Programme. Up until now, the NMa's Leniency Office has operated as a subdivision of the Merger Control Department (assessing mergers and acquisitions). From 1 April 2006, it will be housed under the Antitrust Department. This will improve efficiency and increase effectivity, as leniency cases involve cartels. Enforcing the prohibition on cartels constitutes the Antitrust Department's primary field of activity. The Deputy Director of the Antitrust Department, Mrs. M.W. (Madeleine) McLaggan-van Roon, will act as the NMa's Leniency Officer from 1 April 2006 onwards.

By positioning the Leniency Office as a unit within the Antitrust Department, the NMa rearranges Dutch practice in accordance with the present situation in most member states of the European Union. Furthermore, the NMa will shortly launch an overall assessment of its Leniency Programme in order to optimize its effectivity wherever necessary. The NMa will consult the business and legal community in the process of this evaluation.

The NMa's Leniency Programme provides for a possible immunity or a reduction of the imposed fine ('Leniency'), in case a company informs the NMa about its (past) involvement in a cartel. To qualify for leniency, a number of conditions must be met.A company must voluntarily notify the NMa's Leniency Office and prove willing to provide the NMa with useful information. To facilitate this procedure, the NMa has articulated a set of leniency guidelines. These provide a clear insight into the rules which determine the NMa's decision to confer immunity or reduce a fine, when a company notifies the NMa about its (past) participation in a cartel. The reduction percentage may vary, depending on whether the NMa already started an investigation into a particular cartel, prior to a company's notification of the NMa. It is also taken into account to what extent the information provided may in effect serve as additional proof for the existence of a cartel.

'Since its launch in 2002, the Leniency Office has processed approximately 490 leniency requests submitted by companies operating in the construction industry, and approximately 35 requests from outside of this specific sector. Our Leniency Programme has proved highly efficient to companies. It provides them with an immediate opportunity 'to clear the decks', avoid considerable fines and steer clear of negative publicity. Our successful start should now give way to a further enhancement of the Programme's effectivity', states Mr. J. (Hans) Schönau, Director of the Merger Control Department and former Leniency Officer with the NMa.

Companies which would like to submit an application for the NMa's Leniency Programme, may contact the NMa's Leniency Office, telephone 070 330 1710, e-mail: clementie [at] acm [punt] nl.