Netherlands expands ACM powers to block smaller mergers

The Dutch House of Representatives has approved a new law granting the Authority for Consumers and Markets (ACM) expanded powers to intervene in smaller mergers and acquisitions. This represents the first major change to concentration supervision in the Netherlands since 1998.

Under the new legislation, the ACM will have the authority to investigate and potentially block deals where the combined turnover of the involved companies exceeds 50 million euros. Previously, the regulator could only intervene in large-scale mergers that met specific high turnover thresholds, often leaving smaller acquisitions unexamined.

The initiative, proposed by MP Julian Bushoff, aims to prevent market dominance in sectors such as childcare, healthcare, and veterinary services, where a series of smaller acquisitions can lead to higher prices or reduced quality. Additionally, the law is intended to combat ‘killer acquisitions,’ where dominant technology firms purchase innovative startups to stifle future competition.