| Competition Act
The Competition Act (1997) brought national law more into line with EC competition law. The key provisions include a general prohibition against anti-competitive agreements between undertakings, decisions by associations of undertakings and concerted practices (equivalent to Article 81 (EC)) and a general prohibition against the abuse of any dominant position within the Danish market or any part thereof (equivalent to Article 82 (EC)). Block exemptions apply in the form of Ministerial Orders based on the well-known Commission Block Exemption Regulations. In addition, there is a block exemption for retail distribution chain agreements (buyer groups). There is no merger control in Denmark, but a post-merger notification requirement designed to enable the Competition Authority to monitor developments in the market.
The Competition Council and the Competition Authority
The Competition Council is the principal enforcer of competition law in Denmark. It consists of a Chairman and 18 Members appointed by the Minister of Business and Industry. The Chairman and eight of the Members must be independent of commercial and consumer interests whereas, of the remaining 10 Members, nine are to be nominated by various commercial interest organisations and one by a consumer organisation.
The secretariat of the Competition Council is the Competition Authority, which is an agency under the Ministry of Business and Industry. The Competition Authority is responsible for matters concerning competition, public procurement and state aid. The Authority also administers the statutory rules on energy prices. In addition, the Competition Authority is the secretariat of the Electricity Price Committee and the Gas and Heat Price Committee.
The Competition Authority is currently divided into six project units in charge of different areas of business and industry and also has a legal and international secretariat and an administration secretariat. The staff numbers a little over 100 case handlers and administrative personnel.
Ultimate responsibility in the competition field rests with the Minister of Business and Industry. However, the Competition Council as well as the Competition Authority are independent bodies in the sense that the Minister can neither influence their case-handling nor change or repeal their decisions.
The Council is responsible for administering the Competition Act and the secondary legislation issued pursuant to the Act, whilst the Competition Authority is formally in charge of the day-to-day administration of the Competition Act. Accordingly, the Council is intended to decide matters of principle and complex matters. The Council is also responsible for cases involving the business activities of central or local government administrations and business activities subject, under statutory provisions, to control or approval by public authorities. Finally, the Council has the right to be heard in connection with the Minister's adoption of secondary legislation and issuing of interpreting notices.
The decisions of the Competition Council are subject to appeal before the Competition Appeals Tribunal, which consists of a Supreme Court Justice and two other members, proficient in economics and law respectively. The Appeals Tribunal forms part of the administration and its decisions are in turn subject to appeals before the ordinary courts of law.
Morten Kofmann |
Bech-Bruun & Trolle is among the largest and oldest law firms in Denmark. Together with its office in Brussels, the firm provides a full range of legal services within all areas of business and industry. On major assignments, such as mergers and acquisitions, Bech-Bruun & Trolle is particularly experienced in setting up teams of specialist lawyers. The firm's lawyers are entitled to plead before all Danish courts of law and are well reputed and experienced in Danish and international arbitration and in conductiong cases before the European Court of Justice. Bech-Bruun & Trolle maintains a network of correspondent law firms in all relevant jurisdictions and commercial centres but has no exclusive relationship with other law firms. Clients are referred on an ad hoc basis.