Competition and state aid rules

Legaltree offers expertise in competition law and state aid rules.

Competition law revolves around (preventing) cartel violations, the merger control of both the Dutch Competition Authority (ACM) and the European Commission and the prohibition of the abuse of dominant economic positions. Much of our work consists of advising companies in order to prevent competition law problems.

We do this pragmatically: we provide you with clear advice. We also assist companies in proceedings against ACM decisions and advise prior to or during dawn raids (i.e. unannounced investigations by ACM). We have experience in notifying mergers to ACM and regularly advise and litigate on vertical agreements (distribution, franchising and agency), non-competition clauses, joint development and competition law compliance.

Our lawyers also have extensive experience in advising on state aid issues, including complex collaborations within ‘triple helix’ constructions between governments, knowledge institutions and companies. We assist governments and enterprises in shaping financing and cooperation structures that comply with the European state aid rules. These rules stipulate that aid granted with public funds and providing a selective economic advantage is in principle prohibited. However, the various exceptions to this prohibition in general still leave a variety of possibilities. It is very important for companies to verify whether any aid they receive fits within the state aid framework: after all, if the state aid afterwards turns out to be prohibited, the (recovery) risk lies with the company that received the aid/subsidy. That can have a big impact. We understand those risks and can often mitigate them. Our partners specialising in Financing and Securities law have specific expertise in assessing the market conformity of loans, guarantees and investments.

If a government or government-owned enterprise itself enters into competition with market players, the Dutch Wet Markt en Overheid (Market and Government Act, or WMO) soon comes into play. The WMO allows companies to have government actions tested against the WMO’s rules of conduct if they are hindered by competition from governments. We advise both governments and enterprises on the WMO.

Clients

Our clients are contracting authorities (such as municipalities), care institutions, manufacturing companies, producers, importers, distributors, enterprises in the cultural sector, energy companies and agricultural enterprises.

Competition law

To safeguard fair competition, the Competition Act was introduced in 1998. It is the duty of the Netherlands Authority for Consumers & Markets (the ‘ACM’) to supervise compliance with the competition rules.

Competition law defines the limits imposed on the extent of cooperation between companies and prohibits cartels and abuse of dominant positions. In addition, the law sometimes requires that the ACM is notified of proposed mergers, takeovers or joint ventures, while a ban of state aid may be in place. Breaches of competition rules may be subject to high fines, while agreements made in violation of the competition rules will be void. Anyone taking part in a cartel may be faced with claims for damages from customers.

It is therefore wise to be very strict where compliance with competition rules is concerned. In addition it should be borne in mind that competition law also provides rules for, for example, agreements on exclusive cooperation, non-competition clauses, distribution, franchising, agencies and supply schemes.

Legaltree advises on competition law and assists enterprises in proceedings against the ACM and other disputes involving competition law. We have experience in the notification of mergers and regularly advise and litigate on cartel fines, cooperation between enterprises, cartel damages, compliance, abuse of a dominant position and prohibited state aid.

Our partners specialized in Competition and state aid rules

Specialisatie