NMa fines two former managing directors for non-cooperation in an investigation

The Netherlands Competition Authority (NMa) has imposed fines on two former CEOs of an undertaking for their non-cooperation in an NMa investigation that was launched in 2007. Each individual is fined €150,000.

The NMa demanded information from the two former managing directors, who left the undertaking in 2006, within the context of an investigation into possible violations of the Dutch Competition Act by that undertaking. Under the Dutch General Administrative Law Act, everyone is obliged to cooperate in such an investigation. By repeatedly refusing to answer questions posed by the NMa, both former CEOs have failed to provide information, which constitutes a violation of their legal obligation to cooperate. The NMa is now authorized to impose a fine on them.

When imposing fines on individuals, the NMa takes into account the financial position of the individuals involved. Since both former CEOs also refused to provide information concerning their financial positions, the NMa has determined those positions by means of an estimate, taking into account their positions at their former employer. Considering the latter as well as the severity of the violation, the NMa sets the fine at €150,000 per person.

The maximum fine the NMa can set in case of violation of the obligation to cooperate in an investigation is €450,000.