Dutch Authorities Seek Tougher Oversight and Stronger Competition in Drug Market

The Hague, October 16, 2025 — The Netherlands Authority for Consumers and Markets (ACM), the Dutch Healthcare Authority (NZa), and the National Health Care Institute (ZiN) have jointly urged the government to adopt tighter price controls and stronger competition measures to ensure expensive prescription drugs remain socially acceptable and affordable.

In a joint advisory report to the Minister of Health, Welfare, and Sport, the three bodies warned that rising drug prices and opaque cost structures threaten the sustainability of the country’s health-care system. They argue that better-defined limits on “socially acceptable” prices, combined with enhanced competition between manufacturers, could deliver greater health gains without increasing total spending.

The agencies called for stronger competition between drug manufacturers, noting that market entry is often delayed and comparisons between similar drugs are hindered by inconsistent clinical study designs. They proposed standardizing study requirements across the EU and aligning reimbursement mechanisms for comparable drugs to avoid market distortions.

If competition fails to curb prices, the authorities recommend imposing maximum prices and tighter regulatory oversight. The NZa is studying how price caps could better reflect social value, while the ACM seeks additional powers to address market failures, including the ability to review smaller mergers and apply a “new competition tool” to stimulate rivalry.

Six Principles for “Socially Acceptable” Prices

  1. The greater the health benefit, the higher the acceptable price.
  2. Prices can be higher for serious conditions than for less severe ones.
  3. When the drug’s effectiveness is uncertain, the acceptable price should be lower.
  4. The more society spends overall on a single drug, the lower its acceptable price.
  5. Once R&D costs have been recouped, acceptable prices should decrease.
  6. Less innovative drugs should be priced lower.

These principles will inform an update to ZiN’s drug assessment framework, which will include concrete price recommendations by late 2026.

The recommendations also draw on input from citizens and health professionals, collected under the MAUG program. Research led by Radboud University Medical Center found that the public supports refusing reimbursement for drugs that are insufficiently effective or priced beyond socially acceptable levels.

Source: https://www.acm.nl/en/publications/better-policies-needed-socially-acceptable-prices-expensive-prescription-drugs

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