NMa: greater purchasing possibilities for advertisers
The Netherlands Competition Authority (NMa) expects advertisers to be able to purchase advertising space against lower tariffs in future. The advertising supervisory body ROTA [Raad van Orde en Toezicht voor het Advertentiewezen] has at the urgent request of the NMa cancelled the so-called 'stacking prohibition' [Stapelverbod]. Under the prohibition publishers could not contract more than one advertising agency at the same time. Partly on the basis of ROTA's commitment, the NMa has decided to close its investigation into ROTA.
'Without the 'stacking prohibition' (the prohibition on 'stacking' advertising space) it will be easier for advertisers to set up purchasing combinations', comments René Jansen, Member of the Board of the NMa. 'By joining forces in this way, advertisers may negotiate higher discounts from publishers. This will reduce overall advertising costs for companies, resulting in lower prices of products and services.' The 'stacking prohibition' has, amongst others, affected government organisations. Provincial and local authorities wished to purchase advertising space with central government institutions jointly. In doing so, local and provincial authorities would have been able to benefit from lower tariffs, allowing them individually to cut costs. The 'stacking prohibition' prevented these plans from being carried out.
ROTA draws up rules for the sale of advertising space by Dutch publishers, as specified in its 'Regulation for Advertising' [Regelen voor het Advertentiewezen]. Publishers employ these rules by way of general terms and conditions governing the sale of advertising space in the Netherlands. The NMa will continue closely to monitor the publishing sector. Its closure of the investigation into ROTA does not interfere with other investigations into the publishing sector.