NMa: public-transport companies HTM and Qbuzz are allowed to cooperate
The Netherlands Competition Authority (NMa) has granted Dutch municipal public-transport company HTM (based in The Hague) and public-transport company Qbuzz permission to cooperate with one another. Through their yet-to-be-created joint venture HTM Buzz, HTM and Qbuzz are allowed to submit a bid in the tender of the bus concession in The Hague for the period of 2012-2017. After conducting an investigation, the NMa has found that enough competition will be left in that market after said tender.
The NMa has examined, among other things, whether, in the The Hague bus market, HTM and Qbuzz are each other’s main competitors, and whether they are the leading contenders. If this were the case, a concentration would lead to a less competitive (joint) bid, which could result in higher bus fares. Since Qbuzz has not been active in The Hague yet, it does not have any advantages over competitors such as Arriva and Connexxion/Veolia. HTM and Qbuzz are therefore not each other’s main competitors. In this particular tender, there is enough competition in order to ensure that bids remain competitive.
The situation in The Hague is different from the tender for the bus concession in Rotterdam, where Qbuzz sought to cooperate with municipal public-transport company RET (based in Rotterdam). Like RET, Qbuzz already operates several bus services in Rotterdam. Before reaching its final decision, the NMa wanted to investigate the competitive positions of Qbuzz and RET in the Rotterdam tender in greater detail. Since RET and Qbuzz have withdrawn their concentration notification, the NMa has not launched such an investigation.
When reviewing concentrations and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market.
The investigation process in concentration cases comprises two phases. In the first, short investigation phase, the proposed concentration is examined in order to determine whether it potentially leads to any antitrust concerns. Following the findings of this first phase, the NMa may decide to require parties to apply for a license to merge. If parties file for such a license, the NMa will launch a so-called ‘second-phase’ investigation to examine the identified potential concerns in more detail.
On January 1, 2013, the NMa will merge with the Netherlands Consumer Authority and the Independent Post and Telecommunications Authority of the Netherlands (OPTA), creating a new authority: The Netherlands Authority for Consumers and Markets (ACM). This new authority aims to ensure that markets work in order to protect consumer interests. To this end, the ACM will focus on three main themes: consumer protection, industry-specific regulation, and competition oversight.