NMa Will Complete Sanctions Procedures Construction Sector before the End of the Year

In the course of 2006, the Netherlands Competition Authority (NMa) will complete current sanctions procedures in all involved subsectors of the construction industry. The supervisor expects that most of the fining decisions that are subject to accelerated procedures, will be drawn up in July at the latest. Decisions subject to regular procedures, which have now been initiated in all subsectors, are to follow before the end of the year. As from then, the NMa will continue supervising compliance with cartel prohibitions in the construction sector.

The construction sector has been designated a focus area for NMa activities in the NMa Agenda 2006. The NMa aims to boost compliance with the Competition Act by investigating illegal price agreements and imposing fines, in conjunction with enforcing compliance and leniency programmes. In order to close the large number of cases still open, the NMa has followed accelerated procedures. These accelerated procedures allow companies to 'come clear' within a short space of time. In so doing, they may expect more lenient fines.

In 2005, the NMa completed all accelerated procedures in the roadworks and civil engineering (so called GWW) sector and in the installation engineering sector. Investigations into the building and housing (so called B&U) sector, cable and network companies, horticultural service providers and manufacturers of paving stones and concrete products, have also been brought to a close. Companies that have been reported upon and that have opted for the accelerated procedure, may look forward to a fining decision in July. Companies involved in regular procedures will receive a fining decision before 1 January 2007.

'We are on schedule', says Pieter Kalbfleisch. The Chairman of the NMa Board observes that the accelerated procedures are bearing fruit. 'I would like to call on all companies who are not yet participating in accelerated procedures, to join in as well. Companies that have received a report, will soon be informed about a decision on sanctions. It is important to the sector, and its customers in particular, that the market is continually in motion. We will be monitoring this closely.'

The NMa expects to deal with further construction cases in 2007. These will chiefly concern objection and appeal cases against fining decisions.