NMa: leading organizations in Dutch flower-bulb industry will stop making recommendations on production quotas

The Netherlands Competition Authority (NMa) has suspended its investigation into anti-competitive conduct by a number of Dutch lily-bulbs growers, as well as into recommendations made by two Dutch trade associations on production quotas with regard to flower bulbs. The NMa took this decision after it had received commitments from Royal General Association for Bulb Culture (KAVB) and the Cooperative Dutch Bulb Center (CNB). Both these organizations had made recommendations to bulb growers about limiting the production of certain bulb species. They have now stated in writing that they will no longer continue these activities, and that they will inform their members and managers that joint agreements on limiting production may violate the Dutch Competition Act. The NMa will check whether the organizations will honor these commitments.

The NMa launched the investigation because of indications in the media about production-limiting agreements in the bulb industry with regard to specific bulb species. Demand for certain bulb species had collapsed, pushing down prices, and this would have apparently been the reason for making the agreements. As the NMa conducted its investigation, it became clear that this problem was not confined to a limited number of bulb species. Both KAVB as CNB made recommendations to bulb growers to limit the production of certain bulb species. The NMa investigation into the recommendation practices by these trade associations should be seen in that light.


It also investigated the agreements amongst growers, which had the intention to limit production of one specific lily bulb species. The NMa is of the opinion that these kinds of conduct could be at odds with the Dutch Competition Act. Essentially, undertakings should develop their commercial strategy with regard to price and production quantities on an individual basis. The NMa investigation has resulted in a dialogue between the industry and the NMa. Both KAVB and CNB, which are leading organizations in the industry, have submitted written commitments to the NMa, stating that they would not make any recommendations on limiting production. The investigation into the agreements between growers on the aforementioned specific lily bulb species has been suspended because the turnover in question proved to be small, and because the duration of the conduct was found to be short.


The flower bulb industry is an important industry of the Dutch economy, with total turnover amounting to approximately €500 million. The so-called Food & Agri-industry is one of the NMa's main areas of attention. The NMa will therefore continue to keep a close eye on the flower bulb industry to look for possible anti-competitive conduct.