Increased maximum fines for Dutch competition law infringements

• Netherlands
• United Kingdom

• Competition, EU and Trade - Competition e-briefings

15-08-2016

In brief

The fines which can be imposed for competition law infringements have increased significantly recently in the Netherlands. This effectively means that under the new legislation the maximum fine which can be imposed by the Dutch Authority for Consumers & Markets (“ACM”) for cartel infringements can be up to eight times higher than under the former legislation (e.g. an infringement for 4 years and a repeat offence).

The fines which can be imposed for competition law infringements have increased significantly recently in the Netherlands. As of 1 July 2016, the Dutch regulator, the Netherlands Authority for Consumers and Markets (“ACM”) can impose higher fines for competition law infringements.

Dutch competition law contains relative and absolute maximum fines. Under the former legislation the absolute fine maximum was EUR 450,000 (for both individuals and companies) whereas the relative maximum fine was 10% of the annual turnover (for companies).

Under the new legislation, the absolute fine maximum for all infringements has been raised from EUR 450,000 to EUR 900,000 (including fines for individuals). In addition, the new law makes the relative maximum fine for cartel infringements subject to the duration of the cartel. The relative fine maximum of 10% of the turnover of the infringing undertaking can now be multiplied per year for the duration of the infringing behaviour, for a maximum of 4 years (i.e. 40%). Finally, under the new legislation, the maximum fine will also be doubled in the event of repeat offences.

This effectively means that under the new legislation the maximum fine for cartel infringements can be up to eight times higher than under the former legislation (e.g. an infringement for 4 years and a repeat offence).

Although the number of cases in which the ACM formally comes to a fining decision has been decreasing, the new rules certainly give the ACM much more room to impose higher fines, when needed. The new legislation only applies to conduct after 1 July 2016. Infringements which started before 1 July 2016 and which will end after 1 July 2016 will also fall within the scope of the former rules.

For your information, we have set out below the total fines imposed in the Netherlands in the past three years.

Previously imposed fines in the Netherlands – competition law