Dutch NMA Fines Trade Organisations

MAARSSEN, Netherlands ( November 25th) - The Dutch NMA, a government agency responsible for fair trade, has slapped fines on two of the largest bicycle dealer organisations in Holland. The reason being that both BOVAG and NCBRM allegedly advised their members not to do business with suppliers that offered a too-low margin. Also, they are said to have advised their members to 'review' workshop-tariffs to stay in tune with the rest of the economy. Of course BOVAG (fined € 125,000) and NCBRM (fined € 30,000) feel that this is within the line of duty for a trade organisation. Furthermore the so-called offences date back from 1998…before new NMA guidelines were determined. The trade organisations will formally protest against the decision. Next to the trade organisations the major Dutch bicycle manufacturers are under threat of legal punishment too. After the NMA 'raided' the offices of Gazelle, Batavus, Union and Giant three years ago on the suspicion of illegally controlling bike prices. The case against the companies might take some time yet, but is - according to NMA press officer, now in the closing stages.(MH)