The Netherlands believes the European Union should take stronger action against unfair competition by state-supported companies from non-EU countries. The Netherlands has made proposals to the EU countries to establish stricter rules. These should come into effect as early as next year.
According to State Secretary Monica Keijzer (Economic Affairs), there are increasing numbers of foreign companies that enjoy unfair competitive advantages, for example through government support from their own government. This support may consist of knowledge or money, but also the supply of cheap raw materials or semi-finished products. This disadvantages European companies, argues the Dutch official. Therefore, The Hague has proposed to the European Commission more extensive and stricter competition oversight to be able to investigate beforehand and enforce more effectively.
Companies from third countries that unfairly compete with Dutch and other EU entrepreneurs thanks to state support and unregulated excess profits form a growing problem. State Secretary Mona Keijzer (Economic Affairs and Climate) has sent a letter on this so-called level playing field instrument to the House of Representatives.
Promotion
State Secretary Mona Keijzer (EZK): “We want to continue to do business with countries outside the EU. This has always brought economic benefits to the Netherlands as a trading nation. But the market must be fair and not distorted by companies that enjoy improper competitive advantages due to their home situation.”
This is also the case if these companies have an unregulated dominant market position in their home market that is unequal to other companies within the EU. If there is suspicion that a company is engaging in such behavior with the help of government support, the Netherlands proposes that the European Commission can initiate an investigation.
If the investigation shows that such a non-EU company does not comply with the rules, the European Commission can take enforcement action by imposing a fine or an import ban.
The Netherlands wants the European Commission to take Dutch ideas into account when it comes forward with proposals in the first half of 2020 to address this behavior. Talks on this have already taken place with the Commission and other member states.