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Danisco's rebate-systems are not an infringement of Art. 82 of the Treaty or section 11 of the Danish Competition Act.

26. maj 2004

3/1120-0301-0243/VU/FI The Council meeting 26 May 2004

The Competition Council has considered the structure and the maximumlevel of three different rebate systems that Danisco apply.

The Council applied Art. 82 of the Treaty in the assessment of the rebate-systems because these were found to affect trade between memberstates.

The customers - Danish manufacturing enterprises within the food industry etc. - can obtain the following rebates:

1) A standardized volume rebate on an annual basis (årsbonus) not ex-ceeding 2.5 %,

2) a small logistic rebate (logistikrabat) granted in return for singlepurchases of larger quantities of sugar, and

3) a small additional rebate granted on condition that the customer six months in advance orders prespecified quantities of at least tons of sugar (forudbestillingsrabat).

The annual rebate and the logistic rebate are granted to all customers with no conditions or bindings attached (i.e.obligations to preorder or to reach certain annual volumes).

The Council reached the conclusion that the rebate systems are in compliance with Art. 82 and section 11. Consequently Danisco is not abusing its dominant position on the sugar market in Denmark by applying the systems.

In reaching this conclusion the Council found it important, the level of the aggreated rebates is below an acceptable maximum and that the rebates neither individually or in total are to be considered as anti-competitive loyalty rebates with detrimental effects on the competition.