NMa presents research findings on tariffs set out by royalty collection organisations

It is not readily possible to assess whether royalty collection organisations distribute excessive fees. The Netherlands Competition Authority (NMa) has concluded thus after critical analysis of the enforcement instruments at its disposal. As specific modes of enforcement are lacking, tariffs cannot be assessed in a meaningful way.

Royalty collection organisations have a dominant economic position and are therefore subject to NMa enforcement policy combating the abuse of dominance. The NMa monitors the level of tariffs distributed by collection organisations to users, for instance pub landlords, who have to pay royalty claimants such as artists. The investigation was initiated on the basis of a series of complaints, tip-offs and signals given out by users and branch organisations on the alleged abuse of dominance by collection organisations.


Irrespective of tariff levels distributed by these royalty collection organisations, the NMa will rarely be in a position to assess tariffs to be excessive. 'As compared to other markets, the difficulty of establishing prices at cost level complicates matters here. Also, in the case of pop songs for instance, it is not feasible to link prices at cost level to the product's actual value. All in all, it proves extremely difficult to comment on the issue whether tariffs are excessive', states René Jansen, Member of the Board at the NMa.


There are number of statutory royalty collection organisations in the Netherlands. Exclusively, these organisations are authorised to collect copyright fees on behalf of certain claimants. In addition to these statutory organisations, among which Buma and Sena are the largest, a substantial number of private collection organisations are active.


Collection organisations operate within the media and communications sector, which the NMa has designated a prioritised area of attention in its Agenda for 2007. In the course of this year, the NMa will also focus on the relation between IPR, competition and innovation, given its importance to the Dutch economy.