THE HAGUE – Consumers in Bonaire, Sint Eustatius and Saba have less protection against weak competition, cartel agreements and abuse of market power than citizens elsewhere in the Kingdom of the Netherlands, according to a new study commissioned by the Dutch Ministry of Economic Affairs and Climate Policy.
The study, conducted by Economisch Bureau Amsterdam (EBA), concludes that the current legal and regulatory framework in the Caribbean Netherlands contains “significant gaps” when it comes to protecting consumers and ensuring fair competition.
According to the researchers, maintaining the current system without substantial changes would be “politically and legally difficult to justify and ultimately unsustainable.”
The findings are particularly relevant for the three islands because their small economies and limited number of suppliers can make them especially vulnerable to insufficient competition. When only a few companies provide essential products or services, consumers have fewer alternatives if prices are high or service quality is poor.
EBA argues that a more coherent system combining competition rules and consumer protection could improve the functioning of markets on Bonaire, Sint Eustatius and Saba.
Such reforms could eventually contribute to improved purchasing power, stronger protection for consumers and a more predictable environment for businesses and investors. They could also help reduce differences in the treatment of citizens and companies between the Caribbean and European parts of the Netherlands.
The researchers describe competition as a form of “economic democracy” because it balances the interests of established companies, new market entrants and consumers.
Effective competition can contribute to lower prices, better access to goods and services and higher quality, while consumer-protection policies are intended to ensure that products and services are sold fairly.
Together, according to the study, these policies can contribute not only to greater prosperity but also to a fairer distribution of that prosperity.
The findings add another dimension to the longstanding debate about the high cost of living in the Caribbean Netherlands. Residents of the islands regularly face high prices for food, utilities and other essential goods and services, while the small size and geographical isolation of the markets can limit competition.
EBA's conclusion suggests that geography and transportation costs are not the only issues that should receive attention. The regulatory framework itself must also provide sufficient safeguards against anti-competitive behavior and excessive market power.
Minister Heleen Herbert has submitted the study and its recommendations to the Dutch House of Representatives. The government has not yet taken a final position on the recommendations.
A substantive response from the Dutch Cabinet is expected later this year, when it should become clearer whether the government intends to strengthen competition and consumer-protection legislation for Bonaire, Sint Eustatius and Saba.