ACM: brick manufacturers are allowed to jointly create a deposit fee system for pallets in order to reduce waste

Brick manufacturers are allowed to jointly create a return and deposit fee system for reusing pallets. In this way, they are able to reduce their impact on the environment. The Netherlands Authority for Consumers and Markets (ACM) concludes that this collaboration is compatible with the competition rules, and does not see any objections. The collaboration contributes to a circular economy, leads to cost reductions and does not lead to any negative consequences for buyers of bricks.

Increased reuse of pallets, less waste

At the moment, brick manufacturers usually transport their masonry bricks on pallets, which end up at landfills after a single use. In order to make the sector more sustainable, masonry brick manufacturers wish to reuse pallets. They collectively switch to pallets that can be reused more easily. Buyers return these pallets, so that these can be reused again. A deposit fee system ensures that brick manufacturers and their buyers have an incentive to return used pallets. By doing this collectively, a willingness arises to make the necessary investments for setting up the system. In addition, manufacturers are able to design the system more efficiently as a result of the collaboration by, for example, optimizing transport movements.

The new pallets are expected to last approximately 10 years. The pallets are made out of 100% recycled materials, and are produced using green power. As a result of increased reuse, brick manufacturers reduce their CO2 emissions. They expect to save costs as well. Although the new pallets are more expensive, they last much longer, and the usage is cheaper in the long term.

ACM’s informal assessment 

ACM has informally assessed the collaboration on the basis of its Policy Rule regarding ACM’s oversight of sustainability agreements, and does not see any objections. The reuse of pallets contributes to a circular economy. ACM expects no negative consequences for buyers of bricks such as price increases, reduced innovation, or reduced quality of pallets. ACM also does not expect any negative consequences for suppliers of pallets or pallet-pooling services. The brick manufacturers will periodically put the contracts with the pallet manufacturer and pallet-pooling service provider out to tender again. One precondition that ACM does impose is that manufacturers procure on the basis of the best available knowledge on sustainability and innovations. In addition, all brick manufacturers in the Netherlands are able to participate on a voluntary basis, and are not bound by any obligations. Manufacturers continue to be free to purchase and use other pallets (as well). Also, manufacturers do not exchange competition-sensitive information. 

ACM and sustainability

ACM ensures that markets work well for all people and businesses, now and in the future. More-sustainable products and consumption are an important element of the transition to a sustainable society. ACM wishes to create the right conditions for promoting the sustainability transition. ACM takes away obstacles, and offers opportunities where it can. This does not just apply to the conclusion of sustainability agreements between businesses. ACM also takes action against businesses if they put misleading sustainability claims on their products.

Collaboration test

If you wish to collaborate with another business and you wish to assess whether that is allowed under the competition rules, take ACM’s collaboration test (in Dutch). With the collaboration test, businesses can assess anonymously whether a collaboration is allowed according to the competition rules.

Are you unsure whether the collaboration is allowed, even after doing the collaboration check and after consulting with a legal advisor? If so, ACM can informally assess your sustainability agreement. ACM takes a quick and summary look, and you can start the collaboration with more reassurance. Do you want to know more? See here: Having your sustainability agreement assessed (in Dutch).

More information about collaborations and sustainability can be found here: Arrangements between businesses regarding sustainability (in Dutch).

See also

• Take ACM’s collaboration test (in Dutch)
• Having your sustainability agreement assessed (in Dutch)
• Arrangements between businesses regarding sustainability (in Dutch)