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The German engine manufacturer Deutz AG infringe antitrust regulation in Denmark

12. juni 2013

Deutz AG has infringed the Danish and European competition legislation by preventing the supply of spare parts for the IC3-trains, owned by the Danish State Railways, DSB.

Deutz prevented the supply to DSB’s subcontractors outside Deutz’ exclusive dealership network. The spare parts were to be used in the renovation of 404 Deutz-engines.

Deutz has refused to supply spare parts to the IC3-trains and prevented parallel imports of spare parts in an agreement with its distributor in Denmark, Diesel Motor Nordic A/S. Diesel Motor Nordic, a Danish-Swedish company, has also infringed the Danish and European competition legislation by participating in the agreement with Deutz.

In 2010 DSB attempted to reach an agreement regarding renovation of the engines with Deutz and Diesel Motor Nordic, but could not accept the price and conditions offered. Instead DSB entered into an agreement with a consortium of four smaller companies.

The consortium could not meet the terms of the agreement with DSB, because Deutz had blocked the delivery of spare parts, which can only be sourced through Deutz. In only a few cases the consortium managed to obtain spare parts for DSB; partly by ordering few parts at a time and partly by lying about where the spare parts would be used.

Consequently, DSB had to buy the spare parts at a higher price from the Danish Deutz distributor, Diesel Motor Nordic. DSB has stated that the process has contributed to the breakdown of some of the engines in the IC3-trains, because they were not serviced in time.

The Danish authorities have had a good and close cooperation with the competition authorities in Germany, Sweden and the Netherlands. As a part of this cooperation, The Danish Competition and Consumer Authority has obtained evidence from and participated in dawn raids in those countries.

The Danish Competition Council has ruled that the two companies, Deutz and Diesel Motor Nordic, have infringed the Danish and European competition legislation.

Contract information: Head of division Jacob Schaumburg-Müller (+4541715118) or Special Advisor Anders Wiberg (+4541715012)