A while back, the Dutch Consumers’ Association stated that it is unhappy with internet providers KPN and Ziggo. According to the association, these providers dominate the internet market, thereby driving internet prices far too high. The Consumers’ Association believes that the ACM (Netherlands Authority for Consumers and Markets) must intervene, because internet has become far too expensive in the Netherlands!
Is internet too expensive in the Netherlands?
Due to the dominant position of Ziggo and KPN in the internet market, Dutch consumers have been paying too much for their internet service for years, according to the Consumers’ Association. They say there is ample evidence that there is insufficient market competition, resulting in prices that are far too high. The two providers currently control at least 75% of the market, according to the association. KPN is currently busy replacing its copper network with fiber optics. The Consumers’ Association explains that the result of this is that consumers will ultimately only be able to choose between cable internet from Ziggo or fiber optics from KPN. The providers’ prices are close to each other, but are also among the highest in Europe. Other providers are allowed to use the fiber-optic network, but here too, the Consumers’ Association sees a catch.
Use of the fiber-optic network
What the Consumers' Association finds striking is that other providers using KPN's fiber-optic network are unable to offer lower prices than KPN providers. Odido, for example, does have a lower rate than KPN—on average 6.50 to 8.50 euros cheaper—but Odido’s network is by no means available everywhere in the Netherlands. The association points to a price survey by the European Commission showing that people in the Netherlands pay an average of 10 euros more for a 100 Mbit subscription than the rest of Europe. In the Netherlands, we pay an average of 30 euros per month for such a subscription, while the average price in Sweden is 17 euros.
According to the ACM, switching discounts are evidence of market forces at work, but the Consumers’ Association notes that consumers are still reluctant to switch internet providers. Reasons for this include the hassle involved, insufficient price savings, and not wanting to lose an email address.
Conclusion of the Consumers' Association
The conclusion drawn by the Consumers' Association from its investigation is that the internet market is currently locked down due to the actions of Ziggo and KPN. This is resulting in fewer and fewer choices and ever-higher prices for consumers. The Consumers' Association is calling on the ACM to intervene and take action against KPN and Ziggo, so that internet service in the Netherlands becomes more affordable again. Ziggo and KPN have not yet responded to the situation.