25. maj 2005
Journal nr. 3/1107-0200-0037/KB/SEK
The Council meeting 25th May 2005
The Competition Council decided to recommend to the Minister of Economic and Business Affairs that the special Danish block exemption for horizontal cooperation agreements between retailers be repealed.
The reason was that analyses of the retail market had shown that – contrary to the intentions – the block exemption had restrained rather than promoted the competitive environment of retailers, who have entered into a formal cooperation about joint purchasing and marketing etc.
The Competition Council found that repeal of the block exemption will imply a number of positive effects, such as:
- Focus will move from the internal and mutual obligations of a cooperation agreement to an overall assessment of its possible or actual effects on the market.
- The retailers will no longer have to relate to different sets of rules or to different ways of calculating market shares.
- Identical rules will apply, no matter if the cooperation falls under national or EU competition rules.
The Minister of Economic and Business Affairs has decided to follow the recommendation and has repealed the block exemption with effect from 1st July 2005.
The block exemption will be replaced by guidelines which may help retailers form their cooperation agreements in accordance with the competition rules.