The future of oversight: towards balanced markets for consumers and businesses

Fair and transparent markets require vigilant oversight. In the Netherlands, the Authority for Consumers & Markets (ACM) plays this crucial role by safeguarding fair competition and protecting consumer interests. The regulator oversees various sectors, including the food industry, energy market, and digital services, and actively intervenes in cases of market abuse and misleading advertising practices. Recent actions by the ACM, such as on sustainability claims in the postal sector and with an energy supplier, have once again highlighted the regulator’s relevance and influence. Organizations were called out for using misleading sustainability statements, which they subsequently withdrew. Additionally, the ACM has demonstrated its impact in addressing market concentrations, recently blocking major proposed mergers in the media sector and the fiber optic network.

Growing political support for stronger oversight of market power

As large companies strengthen their positions in various markets, the call for effective control over market power is growing louder. There seems to be increasing support for a powerful regulator that can intervene when market dominance undermines fair competition. Minister Beljaarts (Economic Affairs) recently announced steps toward a future-proof Competition Act in a letter to Parliament. This law may include new powers for the ACM to better manage market power. Furthermore, the minister is exploring a proposal to transform the ACM into an independent administrative authority (zbo) with its own legal personality. This change would not only enhance the regulator’s independence but also its effectiveness in tackling complex market issues. As a zbo with its own legal personality, the ACM could operate more swiftly and efficiently, with greater autonomy to address cross-border competition issues and market concentrations.

This broader move toward a stronger ACM also resonates in Parliament, which recently approved a “call-in” authority for the regulator. This authority allows the ACM to investigate smaller acquisitions that would otherwise fall below notification thresholds. This is particularly important in sectors with local market power, such as veterinary care chains. Additionally, parties like GroenLinks-PvdA, D66, and NSC advocate for a “new competition tool,” as recommended in the recent Draghi report. This tool would allow the ACM to intervene proactively in markets with structural competition problems, even without a direct violation of competition rules, enabling the regulator to address market failures early on.

While broad support exists, the motion for the new competition tool was not adopted. Concerns about a potential disproportionate increase in the ACM’s power, which could upset the balance between oversight and political control, may have influenced this outcome. In response, ACM Chair Martijn Snoep argued for introducing a “third safeguard”: a ministerial authority to review ACM decisions if deemed disproportionate. Combined with thorough economic research and judicial review, this safeguard would ensure balanced oversight that allows market intervention while protecting entrepreneurial freedom.

Sustainability as part of ACM oversight

The ACM’s role and responsibility are also expanding in the areas of sustainable business practices and human rights. Companies face increasing scrutiny on compliance with sustainability regulations and transparent communication about certifications and sustainability claims to prevent so-called “greenwashing.”

In addition, there is an ongoing discussion about whether the ACM will be designated as the regulator for the Corporate Sustainability Due Diligence Directive (CSDDD), also known as the IMVO legislation. This EU directive requires member states to appoint an independent regulator for public enforcement. Under the CSDDD, certain (very) large enterprises in the EU and beyond must develop a due diligence policy to identify, prevent, mitigate, and ultimately eliminate the harmful impact of their business activities, subsidiaries, and selected value chain partners on human rights and the environment. The legislature will address this matter over the next two years.

Increased focus on digital markets

The ACM’s influence is also growing in the digital sector. With the implementation of the Digital Services Act (DSA—focused on regulating online content and protecting users) and the Digital Markets Act (DMA—focused on curbing the market dominance of large platforms), the playing field for digital services and platforms is being reshaped. The ACM is tasked with combating abuse of market power, imposing fines, and aligning guidelines with the European Commission. For digital companies, this means stricter oversight and making compliance an essential part of their operations.

The ACM is an increasingly important force to consider

These developments make it clear that the need for a stronger oversight framework is growing, balancing effective enforcement with entrepreneurial freedom. While it remains uncertain whether the ACM will gain more powers, increasing political attention points in that direction. The ACM’s responsibilities are already expanding, but its budget and resources from the government do not appear to be keeping pace. This imbalance could challenge consistent and effective oversight, especially as expectations for the ACM’s efficacy and impact continue to rise.

For businesses and organizations, this means preparing for stricter scrutiny and greater transparency requirements from the regulator. Opportunities exist to engage with stakeholders and policymakers about the implications of these changes. Sharing practical experiences and concerns can contribute to a regulatory framework that aligns with both market needs and societal interests. By demonstrating openness and a willingness to collaborate, companies can meet compliance requirements and strengthen the trust of consumers and policymakers. In short, businesses that invest in transparent and responsible operations lay the foundation for sustainable relationships in a market where the ACM is playing an increasingly significant role as a regulator.