The Netherlands competition regulator’s strategic focus for 2025

On 5 January 2025, the Netherlands Authority for Consumers & Markets (ACM) outlined its strategic focus for 2025, which is set to significantly impact businesses operating within the Netherlands, including in the realm of competition law. For 2025, the ACM has identified three primary areas of focus: the digital economy, the energy transition, and the development of a more sustainable economy, continuing its trajectory from previous years. Additionally, the ACM has pinpointed specific areas requiring further attention, including new market investigations into sectors such as veterinary practices, digital learning tools, and consumer pricing algorithms. The ACM also plans to modernise its legal instruments to prevent market power abuse. Furthermore, the ACM will continue to monitor other sectors and markets, even if they are not explicitly included in its 2025 agenda.

Market investigations, private equity and new powers

In 2025, the ACM will proceed assertively, having indicated its intention to conduct market investigations aimed at identifying potential issues in sectors such as veterinary practices, digital learning tools, consumer pricing algorithms, the budget segment for fixed internet, and the hydrogen market. Although the ACM frequently conducts market investigations in sectors where there are indications of potential market power, the number of market investigations is expected to increase this year.

Through its investigation into veterinary practices, the ACM addresses a long-standing debate in the Netherlands concerning the role of private equity in acquiring small companies, such as veterinary practices, and the potential market power that could be the result, including claims of excessively high prices. The practice of making small acquisitions, known as roll-up strategies, which fall below the notification thresholds for mergers, poses a significant challenge for the ACM as it currently has no powers to intervene. In response, the ACM has long advocated for changes to the merger control regime, enabling it to investigate and block non-notifiable acquisitions if necessary. Last year, the Minister of Economic Affairs announced an investigation into potential changes to this regime in the Netherlands, which could significantly impact mergers and acquisitions in all sectors, including those involving private equity.

Looking at recent market investigations, the ACM's investigation into banks in the Netherlands is noteworthy. Last year, the ACM published a comprehensive report as part of its investigation into lagging savings rates at major banks in the Netherlands. The ACM concluded that competition in that market was faltering and recommended that the legislature take decisive measures to stimulate competition. The ACM used the outcome of its investigation to also advocate for a new instrument that would grant it new powers to impose far-reaching measures on companies in markets where competition is deemed insufficient, even in the absence of a violation of, for instance, antitrust rules.

This instrument, known as the "New Competition Tool," has long existed in the UK and has been introduced in some EU Member States. At the end of 2024, the Minister of Economic Affairs also announced an investigation into the possible introduction of this instrument in the Netherlands, with more information to be released in the coming months. If the ACM is granted these new powers, it could have profound implications for companies in sectors under investigation, as ex-ante measures could be imposed that affect business operations without any legal violations.

Digital economy

The digital economy and technology have long been high on the ACM's agenda, and this will continue in 2025. In previous years, the ACM initiated some investigations, and it seems these efforts will gain momentum in 2025. The introduction of implementation legislation in the Netherlands of EU regulatory frameworks, including the Digital Services Act (DSA) and the Digital Markets Act (DMA), will contribute to this. For instance, the Dutch implementation act for the DSA was recently adopted and came into effect on 4 February 2024. From that date, the ACM can enforce the DSA at the national level, including imposing sanctions. Companies subject to the DMA or DSA will now need to consider this legislation at the Dutch level. Conversely, companies that can derive rights from this legislation may take, or be prompted to take, earlier action to exercise those rights in the Netherlands.

The ACM has clearly stated its intention to tackle issues such as abuse, misleading practices, and manipulation within online sales and the gaming sector. It is also committed to enforcing regulations that combat the spread of disinformation and hate speech on social media platforms. Furthermore, the ACM is determined to address the exploitation of consumer dependency by businesses on their software or platforms. These focus areas align with broader societal trends and challenges that are prevalent across various jurisdictions

Sustainability

Sustainability has been a key focus for the ACM for several years, particularly in addressing greenwashing through misleading sustainability claims. Over time, the ACM has acted against companies making such misleading claims, and this oversight is set to intensify. The food sector is one area where the ACM plans to increase scrutiny regarding sustainability claims.

In recent years, the ACM has shown a progressive approach towards sustainability agreements and initiatives involving companies and trade associations, including direct competitors. The ACM welcomes proposals for sustainability agreements and broader sustainability initiatives, offering informal assessments to ensure they comply with competition rules. These assessments are primarily evaluated against the safe harbour conditions established in the European Commission's Horizontal Guidelines. In 2024, the ACM assessed several sustainability initiatives, such as the introduction of a new sustainability standard for e-commerce, the recycling of coffee capsules, collaboration on ESG data among banks, and the reduction of production temperatures in asphalt manufacturing.

Energy transition

Regarding the energy transition, the ACM is committed to accelerating this process by facilitating necessary changes and innovations in the energy system. According to the ACM, this includes ensuring affordability, fair cost distribution, and supply security. The ACM will focus on reducing grid congestion, among other things. Planned actions include implementing measures for flexible grid usage to reduce congestion, designing a feed-in tariff for producers to better distribute costs among grid users, and providing information on new opportunities from the new Energy Act, such as energy sharing and energy communities.

Implications for all businesses

The ACM's strategic focus for 2025 presents both challenges and opportunities for businesses operating in the Netherlands. While the ACM's focus areas target specific sectors, businesses across all sectors industries should remain vigilant. The ACM's authority extends beyond these sectors, allowing it to intervene in other markets when necessary. Companies should be prepared for increased scrutiny, particularly with the potential introduction of new regulatory tools that could reshape the competitive landscape, necessitating proactive compliance strategies.

The ACM's commitment to market fairness and consumer protection means that any practices considered harmful or anti-competitive could come under scrutiny. Maintaining vigilance is essential as the ACM continues to monitor and address market issues.