Governments sometimes compete with companies without even realising it. The Competitive Trading Act (Mededingingswet ) includes specific rules for market activities by public enterprises, setting out standards for government conduct.
The Netherlands Authority for Consumers & Markets (ACM) monitors compliance with these rules and orders penalty payments if necessary. Aggrieved parties can also take matters to court. With a few exceptions, public enterprises must charge all the costs of an economic activity to the end user. Cross-subsidising is prohibited. Neither may authorities discriminate in favour of their own public enterprises: the government’s public role must not become entangled with its enterprise activities.
For queries regarding public enterprises and government actions, please contact the relevant specialist at our firm.