Stricter supervision of poorly functioning markets is a key priority in the Netherlands. In last month's news update, we already discussed the bill giving the Netherlands Authority for Consumers and Markets (the "ACM") the power to assess mergers below the turnover thresholds under the Competition Act (Mededingingswet) (website in Dutch). On 1 April 2025, four Members of Parliament – including Wilders and Omtzigt – submitted an initiative policy document (in Dutch) calling for increased supervision of this type of market distortion. They argued that the ACM should be given more power to impose behavioural and structural interventions on companies in those markets. In addition, they want the government to be able to impose statutory maximum prices, remove purchasing restrictions for supermarkets and tackle the banking sector. We discuss all these measures in this news update.

Plea for market remedy power 

The MPs who submitted the policy document observe that people in the Netherlands pay more for supermarket products than, say, people in Germany or Belgium. For example, the Dutch pay 15% more for a jar of Hak apple sauce, and Calvé peanut butter is EUR 1.25 more expensive than in Germany. This is not only due to higher inflation, but can probably also in part be attributed to perceived excess profits generated by companies in recent years as a result of persistent market failure. 

To address this, the MPs call for a 'market remedy power' for the ACM. Competition authorities in several other European countries already have such powers, which are sometimes referred to by the European Commission and the ACM as a New Competition Tool ("NCT"). This tool would enable the ACM to intervene in markets where competition is not functioning properly, even without cartels or abuse of dominance. At present, the ACM cannot take any action in these types of market.

A market remedy power would enable the competition authority, after a thorough market review, to impose specific measures aimed at changing the market structure or market operators' behaviour. In the most extreme cases, a market remedy involves the forced divestment of business units, as occurred in the United Kingdom in response to market distortion in the aviation sector. However, this is a very drastic step and therefore exceptional. Behavioural remedies, such as opening up certain infrastructure or requiring greater transparency from market operators, are likelier options.

In addition, the MPs call for a reduction in purchasing restrictions, which they argue also push up consumer prices and discourage new market entrants. These issues could be addressed by making labels EU-proof and promoting parallel imports to enable supermarkets to purchase products from other EU countries at lower prices.

Case study: the Dutch savings market

One example of a market that the ACM believes is functioning poorly is the Dutch savings market. Lack of competition and savers' reluctance to switch to a different bank allow the three major banks in the Netherlands (ING, Rabobank and ABN AMRO) to tacitly align interest rates. This is not forbidden in and of itself, but it does result in lower savings rates compared with neighbouring countries. 

In its report on the savings market, the ACM states that an NCT would be a good solution to the current competition problems. The MPs behind the initiative policy document agree. In their view, the ACM could use the market remedy power to limit the tied selling of savings accounts and current accounts. In addition, the MPs see a role for the government in promoting the entry of foreign mortgage providers and relaxing the licence application processes for new entrants in the banking sector.

Maximum prices

In addition to banking sector regulation, the MPs call for the introduction of statutory maximum prices in sectors where poor competition causes price increases that an NCT would be unable to resolve. They give veterinary care as an example: a limited number of providers can charge higher prices without this always being matched by a proportionate increase in quality. In veterinary care specifically, this is considered to be a consequence of various successive acquisitions that did not need to be notified ("roll-up strategy"), which allowed companies to increase their market share unnoticed. The MPs expect that a system of maximum prices, mirroring the current rules for dentists and taxi services, could resolve these issues. The ACM would be responsible for enforcing these rates under the initiative policy document.

Outlook

In addition to this market remedy power, the MPs advocate introducing a call-in power, giving the ACM the authority to extend its concentration supervision to below-threshold acquisitions. Similar initiatives have already received a lot of support in the Dutch House of Representatives in recent months. It therefore seems likely that the request to expand the ACM's powers will be granted by the legislature. 

On 10 April 2025, the initiative policy document was submitted to the Ministry of Economic Affairs in a government response. Members of the Dutch House of Representatives can submit questions for written consultation until 15 May. It is not yet clear when exactly this will translate into specific legislation.