THE HAGUE, 21/06/06 - The Netherlands Mergers and Monopolies Authority (NMa) is not impressed by Dutch companies' fears of becoming a prey of foreign players. "The consequences of being a small country are that other parties can enter here more easily than vice versa," said NMa chairman Pieter Kalbfleisch yesterday.

Top executives in the Dutch business world have for some time been critical of the strict way in which competition rules are adhered to in the Netherlands. They fear that Dutch business will be put at a disadvantage because countries like France, Italy and Spain interpret the rules more loosely and allow mergers to create national champions. The merger announced between French energy companies Suez and Gaz de France is an example of this.

Kalbfleisch pointed out yesterday that as supervisor, he must be consistent in checking whether companies are complying with legislation drawn up by The Hague and Brussels. "I can understand the complaints about the sellout of the Netherlands, but (...) we gain nothing if we take decisions that are overturned by the courts. It is the job of the authorities in our neighbouring countries to maintain equally close supervision as we do."

NMa announced yesterday at the presentation of its 2005 annual report that agreements are to be worked on to avoid different domestic supervisory bodies doing the same work. Kalbfleisch gave as an example a merger between two hospitals. "If the Netherlands Healthcare Authority (NZA) comes along first, and subsequently, we come along with a list of questions, we are unnecessarily doubling up. This costs these hospitals much time and thousands of euros." A commission headed by Professor Leo Stevens had earlier urged agreements to avoid companies constantly getting yet another supervisory body on their doorstep.

Kalbfleisch responded positively to the plans of Economic Affairs Minister Laurens Jan Brinkhorst to draw up legislation to enable executives to be more severely punished if they violate the cartel ban. "If you want to frighten off, you must do this over the entire line. Politicians have picked up this signal." The new legislation announced this month is intended to make it possible to impose prison sentences for cartel agreements.

The NMa chief is also pleased with politicians' plans to give consumers a more prominent role in competition law. "We need consumers as providers of tipoffs and experts of experience. So I consider an enlargement of their entrÈe to the NMa a good thing."