A competition law and strengthened consumer protection framework is needed for Bonaire, Sint Eustatius and Saba. Competition rules are currently absent on the three islands of the Caribbean Netherlands, and consumer protection is fragmented and less developed compared to the European Netherlands.
Phased approach
On Bonaire, Sint Eustatius and Saba, a competition law is lacking. As a result, practices such as price fixing and bid rigging are not explicitly prohibited, while consumer protection is fragmented and less well-regulated than in the European Netherlands. Economic Bureau Amsterdam (EBA) recommends strengthening and extending the existing consumer protection framework, and introducing a competition law for Bonaire, Sint Eustatius and Saba. This recommendation is set out in the report “Fair Markets, Better Protection”, commissioned by the Ministry of Economic Affairs and Climate in cooperation with the public entities of the three islands.
Because new legislation takes time, EBA proposes a phased approach in three stages:
- Preparation and activation: The first phase consists of making better use of existing instruments, raising awareness among businesses and consumers, and preparing legislation and institutional capacity (including at the ACM).
- Implementing the legal framework: The legal framework for public consumer protection and a competition law BES is implemented in the second phase. Room for local tailoring in enforcement is essential. A more informal approach for Saba and Sint Eustatius can help, given the small scale and close interconnectedness on the islands.
- Cooperation within the Kingdom: The final phase looks to the longer term, proposing closer cooperation between competition and consumer protection authorities within the Kingdom, aimed at knowledge sharing and joint enforcement on cross-border market issues.
Better functioning markets and a stronger position for consumers
Together, these measures contribute to better functioning markets, a stronger position for consumers, and a more attractive investment climate. They also align better with the frameworks already in place in the European Netherlands, in line with the cabinet’s ‘comply or explain’ principle and the European Union’s decision on competition policy in Overseas Countries and Territories.
Small scale and import dependence
The small size, geographic isolation, and strong import dependence of the island economies make markets vulnerable to concentration, high entry barriers, and vertically concentrated supply chains. At the same time, the islands depend on supplies from outside the island: for Saba and Sint Eustatius, deliveries generally pass through Sint Maarten, while Bonaire relies heavily on transshipment via Curaçao. This underscores that closer cooperation within the Kingdom would ultimately be the most ideal situation.
