NMa: No competition without critical customers

"Critical customers are the drivers of competition," says Pieter Kalbfleisch, Director-General of the Netherlands Competition Authority (NMa) during the presentation of the 2003 Annual Report. According to Mr. Kalbfleisch, consumers and other buyers should be critical. Since, at the end of the day, they are the ones who ensure competition by choosing what they wish to buy, where and at what price.

Companies must serve their customers, but the government must be customer-oriented by drawing up rules that ensure that consumers benefit from the market. "As the regulator, we throw ourselves into the breach for consumers. That is why we find it important to show concrete results, and that consumers ultimately benefit from our work."

“How consumers behave will make or break the success of the introduction of competition in the energy sector," says Gert Zijl, Director of the Office of Energy Regulation (DTe). From 1 July, consumers are able to choose their own energy supplier. Mr. Zijl continues: "Active, critical consumers will compare the offers of various energy suppliers, and opt for the offer that best suits their situation. One will opt for a lower price, while another will opt for the best service. DTe will ensure that consumers that wish to switch suppliers are treated properly." From 1 July, DTe will be granted extensive powers to protect consumers.

The influence of consumers and customers applies to all sectors regulated by NMa. Critical consumers opt for a healthcare provider who offers the best price/quality ratio, they shop in stores of their choice, and they can opt for a petrol station that charges the lowest price because, for instance, it is a self-service petrol station. In the construction industry, customers play an important role in promoting competition between the various suppliers.

The role of the NMa and DTe is not only to ensure that companies have opportunities to compete, but also to promote freedom of choice for consumers. "Everyone is entitled to competition: consumers, business owners, employees, and taxpayers," say Mr. Kalbfleisch and Mr. Zijl in their foreword to the annual report. "Consumers are entitled to competition – the competition authority protects their freedom of choice. Businesses are entitled to competition – the competition authority protects their freedom to compete."

In the 2003 Annual Report, the NMa explains how it has implemented its 2003 Agenda. The most important areas of attention were the construction sector, health care, energy, and the financial sector. Actions taken by NMa have had both short-term and long-term effects on the Dutch economy. The NMa wishes to make the effects of its actions more visible. One of the visible results of 2003 is the reduction in telephone costs because of the reduction in terminating tariffs by mobile operators.

Mr. Kalbfleisch continues: "Taking effective action against companies that obstruct competition continues to  be necessary. To that end, we have made additional investments in staff and resources. And it is paying off." In 2003, the NMa grew from 303 to 342 employees, and drew up 16 reports because of a suspected violation of the Dutch Competition Act. In 14 cases, the NMa imposed sanctions amounting to more than EUR 135 million. In addition, 71 decisions were taken in relation to mergers, acquisitions and joint ventures. In the takeover of Reliant by Nuon, the NMa imposed restrictions to prevent Nuon from acquiring a dominant position.

NMa is currently working on the implementation of NMa Agenda 2004. It will concentrate primarily on the energy sector, the financial sector, the liberal professions and the healthcare sector. It will also pay attention to themes such as tendering, particularly in the construction sector, and procurement power.