NMa: Publishes consultation document joint bidding

Undertakings operative within the same branch conclude temporary joint bidding agreements in order to enter procurement procedures and tender for contract together. The Netherlands Competition Authority (NMa) consults relevant parties in society to gain further insight into the daily practice of joint bidding. This will allow the NMa to provide more clarity on the legal framework for joint bidding, with a view to improving the functioning of markets. In the construction industry, for example, undertakings at times tender for contract jointly.

In the consultation round, the NMa invites parties in society to bring forward information on the way joint bidding is dealt with in practice, preferably by means of concrete examples. Concrete daily situations enhance the NMa's view of possibly positive and negative effects on sound competition resulting from joint bidding activities. Concluding joint bidding agreements with competitors may generate economic benefit. For instance, the number of tenders submitted to the issuing party increases, as more parties are capable of tendering for contract. However, when competitors regularly enter into joint bidding though circumstances do not warrant this, an unnecessary exchange of sensitive information and the occurrence of coordinated practices constitute imminent dangers. As a result, competition may be restricted. This may lead to price increases and less innovation.

The NMa invites parties concerned to respond to the questions in the consultation document before 1 July 2006. The consultation document will be made available on the NMa website (www.acm.nl) as of today.