ACM: asphalt producers are allowed to collaborate in order to make production more sustainable
The collaboration between asphalt producers to make asphalt production more sustainable is consistent with the competition rules. That is the conclusion of the Netherlands Authority for Consumers and Markets (ACM) after Bouwend Nederland, a trade association for the Dutch construction and infrastructure industry, had asked whether the collaboration between its members of the Department on Bituminous Works is allowed. These asphalt producers have the ambition to switch to asphalt with a lower production temperature. A lower production temperature has less impact on the environment. All asphalt producers in the Netherlands share this ambition. ACM has conducted an informal assessment of this collaboration, and did not find any objections: the collaboration helps make the economy more sustainable, without reducing asphalt quality. Moreover, participation in the collaboration is on a voluntary basis, and asphalt producers are free to use higher sustainability standards.
Martijn Snoep, Chairman of the Board of ACM, adds: “Businesses are allowed to work together in order to achieve sustainability goals, such as this initiative of Bouwend Nederland. The Dutch Competition Act offers scope to such collaborations. If businesses have any questions, we will gladly answer them. Businesses that wish to know if they are allowed to collaborate can also use our collaboration test (in Dutch).”
Asphalt with lower production temperatures: less environmental impact
According to Bouwend Nederland, efforts to make asphalt production more sustainable are not really getting off the ground. The technology for more-sustainable production methods is available, but, in practice, customers choose the less sustainable product out of habit. In order to make asphalt production more sustainable, the ambition is announced to switch as much as possible to so-called ‘Warm Mix Asphalt’. This is asphalt that is generally produced between 100 and 140 degrees Celsius. At the moment, a lot of asphalt is still produced at higher temperatures, up to 180 degrees Celsius. A lower production temperature will lead to reduced energy consumption and fewer CO2 emissions.
On the basis of the Policy Rule regarding ACM’s oversight over sustainability agreements, ACM states that the competition rules do not stand in the way of this initiative to make asphalt production more sustainable. ACM does not foresee any negative effects, such as reduced quality. In addition, all asphalt producers are able to participate in the collaboration on a voluntary basis, and they are not bound by any obligations. Each asphalt producer decides for themselves whether or not, and if so, when they switch to asphalt with lower production temperatures. Also, each asphalt producer determines for themselves what production method they will use for that.
ACM does have a point of attention for Bouwend Nederland, which is that the collaboration cannot lead to price increases, for example if asphalt with lower production temperatures is sold at significantly higher prices than asphalt with higher production temperatures. On the basis of the currently available information, ACM believes that the odds of that happening are very slim.
ACM and sustainability
ACM ensures that markets work well for all people and businesses, now and in the future. More sustainable products and consumption are important in the transition to a more sustainable society. ACM wishes to create the right conditions for promoting the transition to a more sustainable economy. ACM eliminates impediments, and offers opportunities where possible. This does not apply to sustainability agreements between businesses alone. ACM also takes action against businesses if they use misleading sustainability claims on their products.
Collaboration test
If you wish to collaborate with another business and you wish to assess whether that is allowed under the competition rules, take our collaboration test (in Dutch).
You have more latitude if your collaboration contributes towards sustainability, for example combating climate change or animal cruelty, preventing environmental pollution, or protecting human rights. With the collaboration test, businesses can assess (anonymously) whether or not a collaboration is allowed according to the competition rules.
More information about collaborations and sustainability can be found here: Arrangements between businesses regarding sustainability (in Dutch).