NMa fines five suppliers of traffic regulation equipment and traffic regulation installations for forming a cartel

The Netherlands Competition Authority (NMa) is fining five suppliers of traffic regulation equipment and traffic regulation installations more than EUR 400,000 for making cartel agreements from January 1998 to the end of December 2003. This is the last case in which the NMa gave companies the opportunity to participate in the accelerated sanction procedure to allow the businesses to 'come clean' after the so-called 'construction fraud affair.' This procedure entailed that the companies were not individually questioned, but that they expressed their view on the report collectively via a representative. The NMa has now concluded all cartel cases against construction companies who participated in this accelerated sanction scheme.

The suppliers in question had contact with each other prior to tendering for projects involving traffic regulation equipment and traffic regulation installations for municipalities, provinces and the Directorate-General of Public Works and Water Management (Rijkswaterstaat). In these contacts the relevant suppliers divided up orders and agreed on prices for quotations. These agreements were all connected and formed a single system with nationwide coverage. Dividing up work and making agreements on tendering practices is an extremely serious violation of the Competition Act. 'It is extremely lamentable that these parties who together dominated the market deliberately disabled competition among each other. After all they are the only suppliers of traffic regulation equipment in the Netherlands. This kind of cartel behaviour is extremely damaging for our economy,' said Pieter Kalbfleisch, chairman of the Board of the NMa. The fact that the businesses continued their cartel practices, even after the Parliamentary inquiry committee had concluded its investigation into the construction fraud affair at the end of 2002, was taken into consideration in setting the height of the fines.

The five businesses involved successfully made use of the NMa's so-called leniency scheme. This allows parties to confess their involvement in a cartel in exchange for an exemption or reduction in fines. The fines were therefore lowered by percentages ranging from 40 to 80 percent.

The five suppliers remove, deliver, install and maintain traffic regulation equipment and traffic regulation installations. Traffic lights are part of a traffic control system that consists of traffic lights, vehicle detectors, detection loops and an intersection controller. An intersection controller is a cabinet located in the immediate vicinity of an intersection which is regulated with traffic lights. An intersection controller processes all the incoming signals (such as detection signals) and controls the traffic lights.

Accelerated sanction procedure 
In November 2007 the NMa drew up a report against the businesses involved for their participation in cartel practices. The relevant businesses opted to participate in the accelerated sanction procedure. That is why the NMa reduced the fines for these companies by 15 percent.

Leniency scheme
Businesses and/or natural persons can confess their participation in a cartel to the NMa's Leniency Office. The new Leniency Guidelines give businesses and individuals the opportunity to check with the NMa Leniency Office whether leniency category A (immunity from fines) is still available (for more information see: https://www.acm.nl).