NMa: More Competition on the Toy Market

The toy chain Toys 'R' Us and Blokker Holding B.V., owner of the toy formulas Intertoys, Toys2Play and Bart Smit, have taken measures which promote competition on the toy market in the Netherlands. The companies were urged to do so by the Netherlands Competition Authority (NMa).

The measures ensure that the toy chain, Toys 'R' Us, can be active on the toy fifth market as a fully-fledged competitor of Blokker. NMa has decided to cease its investigation into a possible infringement of the Competition Act.

An investigation by NMa showed that Blokker was closely involved with its competitor, Toys 'R' Us. The regulator insisted on a package of measures. For instance, Blokker has relinquished its controlling say in Toys 'R' Us. A further measure relates to the abolition of the Supervisory Board of Toys 'R' Us, in which a representative of Blokker had a seat.

In the Netherlands, Blokker is the largest player on the toy wholesale market. Toys 'R' Us is the trade name in the Netherlands of Speelhoorn B.V. and is part of the American company Toys 'R' Us Inc.

The European Commission prohibited the acquisition by Blokker of the activities of the Dutch Toys 'R' Us in 1997, because the acquisition would have resulted in a strengthening of Blokker's dominant position on the specialised toy retail market in the Netherlands. For this reason, the Commission instructed Blokker to sell the Toys 'R' Us stores to an independent third party, whereby it was possible to retain a minority shareholding.

NMa will continue to monitor the toy retail market closely. This market is characterised by a high degree of concentration.