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The Danish Competition and Consumer Authority reports the German engine manufacturer Deutz AG and the company’s distributor in Denmark to the police

10. december 2013

Following a ruling from the Danish Competition Appeals Tribunal, The Danish Competition and Consumer Authority reports the German engine manufacturer Deutz AG and the company’s distributor in Denmark to the police

In June 2013 the Danish Competition Council (DCC) ruled that the two companies, Deutz AG and Diesel Motor Nordic, have infringed the Danish and European competition legislation.

The DCC ruled that Deutz AG had 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 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.

The DCC also ruled that Diesel Motor Nordic, a Danish-Swedish company, had infringed the Danish and European competition legislation by participating in the agreement with Deutz AG.

The case began in 2010 were DSB attempted to reach an agreement regarding renovation of the engines with Deutz and Diesel Motor Nordic. DSB could not accept the price and conditions offered and entered instead into an agreement with a consortium of four smaller companies.

The consortium however could not meet the terms of the agreement with DSB, because Deutz blocked the delivery of spare parts, which can only be sourced through Deutz.

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.

Deutz AG and Diesel Motor Nordic appealed the DCC’s decision to the Danish Competition Appeals Tribunal. The Danish Competition Appeals Tribunal has on December 10th 2013 confirmed the decision made by the DCC.

Following a ruling from the Danish Competition Appeals Tribunal, The Danish Competition and Consumer Authority reports Deutz AG and Diesel Motor Nordic to the police.