The NMa recently fined 10 window cleaners for their market sharing activities in 2006.1 The information on which the NMa based its case was – once again2 - passed on by the public prosecutor who prosecuted the window cleaners for tax evasion and money laundering. The public prosecutor had qualified the cartel as a criminal organisation and prosecuted the behaviour under criminal law. The Court of Appeal of The Hague, however, ruled that (part of) the window cleaners' behaviour qualified as a cartel infringement and as such could only be penalised under the (administrative) Competition Act.3 Unlike other EU member states such as the UK, it is not possible to impose criminal sanctions for competition law infringements in the Netherlands.4
The NMa imposed fines of EUR 1,000 each on nine of the window cleaners and a symbolic fine of EUR 1 on one other window cleaner5 Even though the fines appear quite low, particularly since market sharing is a hard core restriction, the fines can be expected to hit the cartel participants hard as they are all small sole entrepreneurs with modest turnover rates.
Footnotes
1. See the NMa press release of 29 December 2011.
2. See Big brother keeps on listening: the NMa once again uses telephone taps installed by other regulators in our Competition Newsletter of August-November 2011.
3. The Hague District Court, Glashelder of 9 June 2008, LJN:BD3383.
4. It should be noted that a bill introducing criminal sanctions against competition law violations is in preparation. However, rumour has it that the bill has been shelved.
5. Apparently this window cleaner was no longer active as a window cleaner due to his old age in combination with other circumstances and only has a small income; see the summary and the NMa decision of 20 December 2011.
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