Advertisements

Dutch Flower Auction Accused of Blocking Growers’ Freedom to Trad

by Anna

Royal FloraHolland, the world’s leading cooperative for flowers and ornamental plants, is under investigation by the Dutch competition authority for allegedly restricting competition in the floriculture sector.

The Netherlands Authority for Consumers and Markets (ACM) is reviewing formal complaints accusing the cooperative of using its dominant market position to limit growers’ choices and stifle alternative service providers.

Advertisements

Documents reveal that multiple stakeholders have raised concerns about Royal FloraHolland’s control over how Dutch growers process transactions for their plants and flowers.

Advertisements

Central to the complaints is the claim that the cooperative mandates members to use its own payment system, threatening financial penalties for those seeking alternative arrangements.

Advertisements

One key complaint, submitted in April by Agri Inter Incasso (Ai2), a payment service provider for over a thousand floriculture businesses, accuses Royal FloraHolland of “structural abuse of power.” According to Ai2, growers who process payments outside the cooperative’s platform risk fines of up to 2.52% of their revenue, plus an additional 2% levy if external sales aren’t declared.

Advertisements

The cooperative, which operates major flower auction centers across the Netherlands—including in Eelde—is also alleged to demand full access to members’ revenue data. This enables it to monitor off-platform sales and enforce its exclusive payment requirements.

As Royal FloraHolland plays a pivotal role in the global trade of flowers and plants, the outcome of the ACM investigation could significantly impact growers and the broader ornamental market. The company has not yet issued a public response to the allegations.

You may also like

Bithmonthflowers is a professional flower and plant portal website, the main columns include flowers, plants, birthdays, occasions, and holiday flower delivery knowledge and tips and other related content.

【Contact us: [email protected]

Copyright © 2023 bithmonthflowers.com