Competition law and state aid

Companies are not allowed to enter into any kind of arrangement that may restrict competition. The Netherlands Authority for Consumers & Markets and the European Commission strictly supervise compliance with competition regulations. Our specialist competition and state aid lawyers will help you stay within the boundaries of competition law. They also support public authorities in correctly applying the Dutch Public Enterprises (Market Activities) Act and European state aid rules, and they advise entrepreneurs on the potential risks involved in receiving state aid.

Our approach

Our committed competition law and state aid team boasts extensive experience with what are often highly complex issues around competition law, compliance with the Dutch Public Enterprises (Market Activities) Act, and state aid rules. They advise on what would be the best strategy to follow. And they do that from a practical mindset, while always being to the point so that you always know where you stand.

In order to prevent the state from influencing the market, the state is under an obligation to abide by state aid rules. We will help you with advice on how to apply these rules correctly and will be there for you whenever it is not clear whether certain state aid might be classed as being unlawful. We are also here for entrepreneurs who believe a public institution is competing with them.

Your specialist
Pieter van den Oord

Specialist Procurement law & Corporate law & Competition law and state aid

What we can do for you

Competition law distinguishes between horizontal and vertical agreements. Horizontal agreements are arrangements between parties that operate within the same industry. Vertical agreements are arrangements between parties within the same supply chain, such as suppliers and buyers.

We can support you with all types of contracts and help you stay within the frameworks set by competition law. We will do that by helping you with questions such as the following:

  • What joint procurement arrangements can I make with my competitors?
  • Does having a joint production facility with another party allow us to agree not to complete with each other?
  • Does our agreement fall within the scope of the group exemption for research and development agreements?
  • Am I allowed to share information with my competitors?

Needless to say, we will also be there for you if you have partnerships with distributors and buyers. We will be happy to explain what arrangements you are and are not allowed to make, assess whether the arrangements you have made in your franchise contract comply with current competition law, and advise you on what you as a trade association can and cannot advise your members to do.

Failure to comply with competition rules may lead to steep fines, damage to your reputation, liability for directors, and proceedings for damages, which you obviously want to avoid. It is not always instantly clear whether or not a certain agreement is against the rules. We will help you get clarity on how to prevent violations of competition law in your organisation. 

Aside from that, we will be there for you in the event that the Netherlands Authority for Consumers & Markets were to investigate your company. We will then identify the risks and advise you on what steps to take. On top of all of that, we can assist you if you decide to file a complaint with the Netherlands Authority for Consumers & Markets or the European Commission regarding a competitor who is abusing their position of dominance.

Mergers, acquisitions, and joint ventures over a certain size must be submitted to the Dutch competition authority for approval. The Dutch competition authority will then check whether the merger, acquisition, or joint venture will lead to a restriction of competition. Whether the Netherlands Authority for Consumers & Markets and/or European Commission will also have to sign off on the merger, acquisition, or joint venture depends on the revenue of the companies involved. We will be happy to advise you on what steps to take. And we are here for you if you want to file an objection to a merger or acquisition involving one or several of your competitors.

State aid rules prevent unfair competition caused by the state benefiting a certain company by granting a subsidy, guarantee, option, loan, or through a land transaction or tax arrangement. When such an agreement violates state aid rules, the agreement will, in principle, be voided. This could lead to the parties involved being obliged to undo the agreement years after entering into it, which could, in turn, come with losses for all parties involved. State aid is primarily monitored by the European Commission, but it is not uncommon for civil courts to deal with cases about (the consequences of) unlawful state aid.

We help both public authorities and entrepreneurs with practical advice on state aid rules. We will, for example, assess whether or not you have to report an intended aid measure to the European Commission and advise you on how to prevent unlawful state aid and overcompensation.

For entrepreneurs, we will identify the potential risks involved in receiving state aid and help you when you suspect that one of your competitors has received unlawful state aid.

The purpose of the Dutch Public Enterprises (Market Activities) Act is to prevent unlawful competition by state bodies that are involved in economic activities. This piece of legislation sets a number of rules of conduct that public bodies have to adhere to when they compete with private-sector parties. These rules govern the Dutch national government, provincial authorities, local authorities, water boards, independent administrative bodies, and collaborative arrangements between public authorities.

We help public authorities in correctly applying these rules of conduct and support entrepreneurs who believe that the state is unlawfully competing with them. 

Competition and state aid often come down to compliance. The (financial) consequences of failure to comply with the rules are extensive and the interests are great. It’s a challenge to find a creative and practical way to stay within the strict frameworks of the law. I’m here to take on that challenge with you.
Pieter van den Oord
Lawyer, Partner
Call: +31 172 530 250