NMa fines two cartels in Dutch painting industry

The Netherlands Competition Authority (NMa) again imposes fines, totaling €161,000, on two cartels in the Dutch painting industry. The cartels, which are based in the southern Dutch city of Eindhoven, involve six painting companies, one of which participated in both cartels. The facilitator of these cartels, a cost engineering firm, which had already been fined earlier this year in June for having facilitated two other cartels, is imposed another fine, this time for €29,000. Some of the painting companies that had already been fined in June for cartel participation are involved in these cartels as well. They too will each face another fine.

The NMa considers it proven that two separate cartels were created in March and May 2006, the cartel participants of which colluded to restrict competition prior to two public tenders. These tenders concerned painting contracts for an apartment building in the city of Veldhoven and for the Pieter van den Hoogenband indoor swimming pool (formerly known as 'de Tongelreep') in Eindhoven.

Prior to submitting their own bids for the two tenders, the six painting companies had divided the work and harmonized their bids. The cartels were facilitated by cost engineering firm Calculatiebureau Coöperatieve Vereniging Spegelt. U.A., which had organized a meeting at its offices to discuss the tenders, was present during that meeting, drew up documents listing the agreements made, and which managed these agreements. Spegelt has thus been actively involved in establishing these cartels.

Bid rigging constitutes an extremely severe violation of the Dutch Competition Act. A tender is the one moment when undertakings are able to, and should, compete with one another. 'To everyone that plans to take out the competition for personal gain in this way: take heed of this fine,' says Pieter Kalbfleisch, chairman of the Board of the NMa.

The following cartel participants have been fined for their involvement in both tenders: Coöperatieve Vereniging Spegelt U.A. domiciled in Helmond (€21,000 and €8,000) and Schilder- en Isolatiewerken Coolen B.V. domiciled in Eindhoven (€27,000 and €12,000).

The following undertakings have been fined because of their involvement in one tender: Schildersbedrijf Van de Looij B.V. domiciled in Veldhoven (€34,000), Schildersbedrijf Dirks Deurne B.V. domiciled in Deurne (€22,000), Schildersbedrijf M. van der Kruijs B.V. domiciled in Eindhoven (€18,000), Van Tour Eindhoven B.V. domiciled in Eindhoven (€11,000) and Liebregts Resultaatgericht Vastgoedonderhoud B.V. domiciled in Eindhoven (€8,000). Schildersbedrijf Van de Looij B.V. was already imposed a fine (€17,000) in June, as was Van Tour Eindhoven B.V. (€28,000). Liebregts Schilderwerken B.V. domiciled in Eindhoven, which had been involved in the investigation, was not fined, because it has been established that it had not been involved in the illegal agreements.

These fine decisions have been issued based on the two reports that the NMa had drawn up after the investigation, having taken into account the undertakings' opinions thereon. The undertakings can file a complaint with the NMa against these decisions, or they can request the NMa to agree to a direct appeal with the District Court of Rotterdam.

The NMa would like to point out that undertakings that have violated the Competition Act by participating in a cartel can apply for leniency, including cartel facilitators. Under the NMa's leniency program, cartel participants may be eligible for fine reduction. The first cartel participant to apply may even escape a fine completely, provided the participant voluntarily files a leniency application with the Leniency Office of the NMa, and provides relevant information about the cartel. More information on the NMa's leniency program can be found online at: Leniency

For the press release on the cartels in the painting industry of June 2009, please click here.