NMa Suspects Three Construction Companies of Recently Forming a Cartel

The Netherlands Competition Authority (NMa) suspects three construction companies of recently entering into cartel agreements with regard to a private tender issued by the municipality of Amsterdam. The tender related to the upgrading of two streets in Amsterdam North. The NMa suspects three companies of prior consultation with regard to this tender. For this reason, NMa has drawn up a report on the companies involved, namely Floris Aannemingsmaatschappij B.V., Zandrema B.V. and Aannemingsmaatschappij AC de Groot B.V. NMa started investigating this case after the municipality of Amsterdam gave notice of its suspicion that a cartel had been formed in relation to this tender.

At the end of November 2002, the municipality of Amsterdam sent the three companies the specifications of the private tender. The contract was to be awarded to the subscriber with the lowest bid. The subscriptions were to be submitted on 12 December 2002. According to NMa, prior consultations were held between the companies on two occasions at the beginning of December. NMa suspects that the companies decided during these discussions who would be given the assignment and the price at which they would subscribe. The municipality of Amsterdam was probably put at a disadvantage as a result of this.

NMa draws up a report if it has a reasonable suspicion that companies have infringed the Competition Act. The undertakings may now respond to the report. After this, NMa will take a final decision on whether an infringement has been committed and, if so, whether it will impose a fine.

A special team at NMa is investigating the formation of cartels in the construction sector. Up until now, NMa has drawn up reports in seven cases in relation to prohibited agreements in the construction sector. In 2003, NMa will give priority to the construction, healthcare, energy and financial sectors.