NMa Prohibits Agreements in the Bus Branch

The Director-General of the Dutch Competition Authority (NMa) today decided to prohibit the agreement between manufacturers and importers of buses (including luxury buses) and the Bus Transport Department of Koninklijk Nederlands Vervoer [Royal Dutch Transport] (hereinafter "KNV Busvervoer"), which limit opportunities to finance the purchase of buses. NMa is of the opinion that this agreement raises a barrier to new entrants who wish to enter the bus transport market.

In the 'Letter of Intent in Respect of the Financing of Luxury Buses', the manufacturers and importers of buses and KNV Busvervoer, an organisation representing employers in the bus transport sector, agreed that the suppliers would not grant a 100 percent repurchase guarantee to financial institutions which wish to finance the purchase of buses. The consequence of this agreement is that it will be more difficult for new entrants, who wish to set up a bus company, to arrange finance. In addition, the agreement restrains competition between the various producers and importers of buses in this regard. In the opinion of NMa, the agreement raises improper barriers to new entrants and obstructs competition in relation to the provision of financing arrangements between the producers and importers of buses (including luxury buses). For this reason, the agreement does not qualify for exemption from the prohibition on cartels and is prohibited as of today.