Tweede Kamer votes to make law on fair competition with government permanent
The Tweede Kamer has approved changes to the law that shields small businesses from unfair competition by governments, including a duty to justify why a government runs an activity itself.
The Tweede Kamer approved changes to the Wet markt en overheid (the market and government act) on 13 October, making the law permanent instead of temporary. The changes were proposed by Heleen Herbert, the minister of Economic Affairs and Climate.
Why it matters
- The law becomes permanent, which the ministry says gives governments and entrepreneurs certainty and clarity.
- Governments must explain better why they carry out an economic activity themselves on grounds of general interest (algemeen belang).
- Governments may make the source code of software they developed themselves available free of charge. The law now requires them to charge at least the full cost price, for example for a parking app.
Governments such as municipalities sometimes act as market parties. Examples are running sports facilities, camper sites and marinas, collecting commercial waste, and selling or renting out property. The law protects small and medium-sized entrepreneurs active in these sectors from unfair competition.
On open-source software, the ministry said publicly funded software should be shared with society wherever possible.
Herbert welcomed the vote. "This brings calm and predictability," she said. "A strong economy starts, as far as I am concerned, with fair competition and a level playing field." She said governments "will not carry out economic activities where business can also do so for a comparable price and quality. That prevents unnecessary costs for citizens."
The Eerste Kamer, the Senate, still has to consider the amended law. If it agrees, the law takes permanent effect on 1 July 2027.
Eerste Kamer
The Senate, the upper house of the Dutch parliament. It cannot amend bills but can approve or reject them after the Tweede Kamer has passed them. Its 75 members are elected by the members of the provincial councils.
Wet markt en overheid
The Market and Government Act is a Dutch law that sets rules for when public authorities, such as municipalities, act as market parties and compete with private businesses. Its purpose is to stop government bodies from gaining an unfair advantage over small and medium-sized entrepreneurs, for example through subsidies or the use of public resources. The Tweede Kamer's decision means the law will apply permanently instead of on a temporary basis, once the Eerste Kamer also approves it.
gemeente
A gemeente is a municipality, the local government unit in the Netherlands that is run by a gemeenteraad (municipal council) and a burgemeester (mayor). In this article it refers to local governments acting as businesses, for example by running sports facilities, camper sites, marinas, commercial waste collection, or by renting out property. Those activities fall under the Wet markt en overheid when they compete with private companies.