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The Danish Competition Council decides that consortia agreement between two road-contractors is illegal

25. juni 2015

On the 24th of June 2015 the Danish Competition Council found, that LKF Vejmarkering A/S (LKF) and Eurostar Danmark A/S (Eurostar) have infringed Section 6 of the Danish Competition Act and article 101 of the TFEU by entering into a consortium, while being actual and potential competitors in the market for road marking. The Danish Competition Council orders the undertakings to end the infringement immediately and to refrain in the future from any action having the same or similar object or effect.

In March 2014, the DCAA received a complaint concerning a consortium between LKF and Eurostar, who are respectively the largest and the second largest contractor in the market for road marking. A competitor to LKF and Eurostar submitted a complaint in continuation of the consortiums bid in a public procurement put out by The Danish Road Directorate.

The public procurement concerned road marking on the road system owned by the state (administrated by The Danish Road Directorate) for a period of 4 years (2014-2017). The public procurement covered road marking in most of the territory of Denmark.

Through the consortium, LKF and Eurostar submitted a joint bid on the public procurement, while also deciding beforehand how to share the work in the procurement between them. By submitting the lowest bid the consortium won the public procurement. Both LKF and Eurostar would however have been able to make stand-alone bids and the consortium therefor limited the number of bidders in the public procurement, which might have led to higher prices for the Danish Road Directorate.

Based on the evidence in this case the DCC found, that the consortium between LKF and Eurostar was not objectively necessary to enable the companies involved to participate in the public procurement, i.e. they would have been able to participate individually. Consequently, the parties to the consortia arrangement were therefore actual and/or at least potential competitors, and the consortium restricted competition within the meaning of Section 6 of the Danish Competition Act and Article 101 of the TFEU.

The Danish Competition Council ordered the undertakings to end the infringement immediately and to refrain in the future from any action having the same or similar object or effect.

For more information please contact Head of Division, Jacob Schaum-burg-Müller, phone +45 71 51 18, e-mail jsm@kfst.dk.

Related material

Read the Competition Council's decision (Danish)

Last updated: 25. juni 2015