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The prohibition of Resale Price Maintenance

The prohibition of resale price maintenance

Resale price maintenance (RPM) is a practice that has long been under scrutiny by competition authorities worldwide. It involves suppliers exerting control over the prices at which retailers can sell their products, potentially resulting in anti-competitive outcomes. In the Netherlands, the Dutch Competition Authority (ACM) has been taking an increasingly active role in ensuring compliance with RPM prohibition rules. This article delves into the recent efforts of the ACM in combating RPM, the tools and resources it has provided to suppliers and retailers, and the implications of these actions for businesses operating within the Dutch market.

The ACM’s Vigilance against RPM

On 20th March 2023, the ACM issued a press release highlighting its ongoing commitment to monitor and enforce the prohibition of RPM. This followed a similar statement made less than a year prior, illustrating the regulator’s dedication to addressing potential breaches of RPM rules. In response to these warnings, the ACM has been actively monitoring various companies to ensure compliance with regulations and identify any instances of RPM.

The Importance of Retail Price Autonomy

At the heart of the prohibition of RPM lies the principle that retailers should be able to set their selling prices independently, free from any undue influence by suppliers. Suppliers are permitted to provide non-binding advice on selling prices, but exerting significant control over retailers’ pricing decisions is strictly prohibited. This policy aims to promote fair competition and prevent anti-competitive practices within the market.

The ACM’s Recommended Price Check Tool for Entrepreneurs

In a bid to facilitate compliance and educate businesses on the nuances of RPM regulations, the ACM has developed a recommended price check tool. This resource is available on the regulator’s website and enables suppliers to evaluate their adherence to the rules. In addition, retailers can use the tool to assess whether their suppliers are exerting any unlawful influence on their sales prices, both in-store and online.

To further support retailers who believe they may be experiencing RPM at the hands of their suppliers, the ACM has also provided a sample letter template. This document can be used by retailers to formally address their concerns and request that their supplier cease any prohibited practices.

The Consequences of Non-Compliance

The ACM’s repeated warnings against RPM practices within a relatively short timeframe demonstrate that the enforcement of RPM prohibition is a top priority for the regulator. Businesses that continue to engage in RPM should expect to face significant fines and penalties, given the ACM’s clear and consistent messaging on the matter. It is crucial, therefore, that suppliers and retailers familiarise themselves with the rules surrounding RPM and take appropriate measures to ensure compliance.

Understanding the Broader Implications of RPM Prohibition

While the ACM’s enforcement of RPM prohibition is aimed at fostering a competitive market environment, it is essential for businesses to understand the wider implications of these rules. The prohibition of RPM can impact supply chain dynamics and relationships between suppliers and retailers, necessitating adjustments in pricing strategies and communication methods. Furthermore, businesses operating in the Dutch market must be prepared to adapt to the ACM’s ongoing monitoring efforts and adjust their practices accordingly.

Conclusion

The prohibition of resale price maintenance is a crucial aspect of competition regulation, as it seeks to protect the autonomy of retailers and ensure fair competition within the market. The Dutch Competition Authority’s recent actions, including the development of a recommended price check tool and issuing repeated warnings against RPM practices, demonstrate the regulator’s commitment to enforcing these rules. As a result, suppliers and retailers operating in the Netherlands must remain vigilant in their compliance efforts and be prepared to adapt to a more closely monitored market landscape.

If you have any questions or require legal assistance regarding the prohibition of resale price maintenance, please don’t hesitate to reach out to our knowledgeable and dedicated team at our Dutch law firm. We are committed to providing exceptional legal services and personalized attention to address your unique needs. You can contact us through our website, via email, or by phone. Our friendly and professional staff will be more than happy to assist you and schedule a consultation with one of our expert attorneys in the Netherlands, for example, a Dutch litigation attorney or contract lawyer in the Netherlands in Amsterdam. We look forward to the opportunity to help you navigate the complexities of the legal landscape regarding the prohibition of resale price maintenance and achieve the best possible outcomes for your case.

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Remko Roosjen

Remko Roosjen

Remko Roosjen is a Dutch contract attorney in the Netherlands and creates close working relationships with clients, providing pragmatic solutions across on all legal matters in the Netherlands. Remko is a partner of our commercial law firm in Amsterdam, the Netherlands. His specialist areas include Dutch contract law, including Dutch commercial contracting and legal disputes, including civil litigation, arbitration and mediation. Remko is a sharp, creative Dutch attorney with extensive cross-border experience representing both foreign plaintiffs and defendants. Visit Remko's profile via the website or via his LinkedIn Profile.