NMa imposes fines on three executives of southern Dutch construction companies
The Netherlands Competition Authority (NMa) has imposed individual fines on three executives of two construction companies based in the southern Dutch province of Limburg. The fines vary between EUR 10,000 and EUR 250,000. The executives gave instructions regarding certain conduct that constitutes a violation of the Dutch Competition Act by their companies. Both companies have deliberately misled clients by way of cover pricing.
Cover pricing occurs when a potential bidder obtains a price from a competitor in the tender process, which is not designed to win the contract but is intended to give the appearance of competition, in order to explicitly remain on the client's radar. The construction companies in question are Janssen de Jong Infra BV and contracting and road-construction company Aannemings- en Wegenbouwbedrijf Limburg BV. Next to the individual fines imposed on their executives, these companies themselves have been imposed fines, too, totaling more than EUR 3 million.
Chairman of the Board of the NMa Pieter Kalbfleisch explains: 'We all know that if bidders rig their bids, the client loses. Janssen de Jong Infra BV and its parent companies and subsidiaries have already been fined before, as part of the so-called construction industry fraud case in the Netherlands a couple of years ago, with those fines totaling more than EUR 1.5 million. The fact that this company has once again violated the law is the reason why its fine has been set higher.'
The NMa found out about these violations after it had been informed about them by the Dutch Public Prosecution Service, which came across information relevant to the NMa in its investigation into corruption and bribery of government officials. It then passed on this information to the NMa.
Undertakings and/or individuals can confess their participation in a cartel by contacting the NMa's Leniency Office. This may result in a reduction of the fine, or even in completely escaping the fine. For more information on leniency, see http://www.nmanet.nl/engels/home/Business_information/Leniency/index.asp.