# CE2004070EN.01013701.xml

| 20.3.2004 | EN | Official Journal of the European Union | CE 70/137 |
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20.3.2004

EN

Official Journal of the European Union

CE 70/137

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(2004/C 70 E/140)

WRITTEN QUESTION P-2766/03

by Elly Plooij-van Gorsel (ELDR) to the Commission

(11 September 2003)

Subject:   International building fraud

Subject:

In January 2003 I put questions to the Commission about the possible involvement of construction firms from Belgium and German in construction fraud in the Netherlands. These questions also mentioned the possible involvement of Dutch firms in illegal pricing and labour agreements in other Member States.

The Commission states in its answer that the Netherlands Competition Authority (NMA) is investigating a number of cases and informs the Commission about them on a regular basis. The Commission also stated that it will take action if it is supplied with credible information on any cartel significantly influencing trade between the Member States.

| 1. | Has the Commission come to the conclusion, on the basis of information supplied by the NMA, that an illegal cartel has in fact been created? |
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1.

Has the Commission come to the conclusion, on the basis of information supplied by the NMA, that an illegal cartel has in fact been created?

| 2. | If so, has the Commission taken any measures in this connection? |
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2.

If so, has the Commission taken any measures in this connection?

| 3. | Have any new cases concerning the possible creation of illegal cartels been notified by the NMA to the Commission? |
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3.

Have any new cases concerning the possible creation of illegal cartels been notified by the NMA to the Commission?

| 4. | If so, what ruling has the Commission made on these cases? |
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4.

If so, what ruling has the Commission made on these cases?

Answer given by Mr Monti on behalf of the Commission

(6 November 2003)

(6 November 2003)

| l. and 2. | As mentioned in the reply to written question P-308/03 by the Honourable Member (1), the Commission is aware of cases of alleged fraud and price fixing in the construction market in the Netherlands through the national competition authority (Nma), and the media. It also learned of the allegations that non-Dutch enterprises were involved in these practices on the Dutch market and that Dutch enterprises were involved in foreign markets.
  The Commission does, however, not intend to interfere with these ongoing investigations of the NMa in the Dutch construction sector. The Commission understands that the possible involvement of foreign companies is taken on board by the NMa in these investigations. Hence, the Commission has not started separate formal investigations on the basis of the above information.
  Where the centre of gravity of an alleged infringement is in one Member State, the national competition authority is often best placed to deal with such allegation. However, even in such cases, provided there is an effect on trade between Member States, the Commission can decide that it is in the interest of the Community to launch a Commission investigation into these practices.
  For instance, the Commission currently investigates possible infringements of the European competition rules in the sector of bitumen. This investigation — that relates to cartels on national markets, including the Dutch market — concerns the practices of bitumen producers and their main customers, i.e. the road construction companies. |
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l. and 2.

As mentioned in the reply to written question P-308/03 by the Honourable Member (1), the Commission is aware of cases of alleged fraud and price fixing in the construction market in the Netherlands through the national competition authority (Nma), and the media. It also learned of the allegations that non-Dutch enterprises were involved in these practices on the Dutch market and that Dutch enterprises were involved in foreign markets.

1

The Commission does, however, not intend to interfere with these ongoing investigations of the NMa in the Dutch construction sector. The Commission understands that the possible involvement of foreign companies is taken on board by the NMa in these investigations. Hence, the Commission has not started separate formal investigations on the basis of the above information.

Where the centre of gravity of an alleged infringement is in one Member State, the national competition authority is often best placed to deal with such allegation. However, even in such cases, provided there is an effect on trade between Member States, the Commission can decide that it is in the interest of the Community to launch a Commission investigation into these practices.

For instance, the Commission currently investigates possible infringements of the European competition rules in the sector of bitumen. This investigation — that relates to cartels on national markets, including the Dutch market — concerns the practices of bitumen producers and their main customers, i.e. the road construction companies.

| 3. | The NMa is not obliged to notify possible new cartel cases that it is dealing with to the Commission. At the same time, it is established practice that the NMa informs the Commission about its ongoing cartel cases that may be of interest to the Commission. |
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3.

The NMa is not obliged to notify possible new cartel cases that it is dealing with to the Commission. At the same time, it is established practice that the NMa informs the Commission about its ongoing cartel cases that may be of interest to the Commission.

| 4. | The Commission has not recently issued decisions which would have been initiated on the basis of information transferred by the Dutch competition authority. |
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4.

The Commission has not recently issued decisions which would have been initiated on the basis of information transferred by the Dutch competition authority.

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(1)  OJ C 11 E, 15.1.2004, p. 81.

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