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Denmark: ”Franchise chain in Denmark pays fine in settlement for fixed selling prices and shared markets of supply with respect to milking robots”

11. maj 2016

In April 2016, the franchisor Lely Nordic A/S, three Danish franchisees and a person from the management in Lely Nordic A/S entered into a settlement with the Danish State Prosecutor for Serious Economic and International Crime for infringing section 6 of the Danish Competition Act and article 101 of the Treaty of the Functioning of the European Union.

The infringement concerned fixed selling prices and shared markets of supply with respect to milking robots. Both the franchisor and the franchisees were involved in the infringement.  

Lely Nordic A/S accepted to pay a fine of DKK 750,000 (€ 100,720) and the three franchisees (B.F. Malketeknik A/S, Sydjysk Malke- og Staldteknik ApS and Vestjysk Staldteknik ApS) each accepted fines of DKK 100,000 (€ 13,430). The person from the management in Lely Nor-dic A/S accepted a fine of DKK 25,000 (€ 3,360). 

The size of the fines reflects, among other things, the duration of the infringement (4 years and 6 months) and the turnover of the companies. 

The Danish Competition and Consumer Authority took up the case on the basis of a number of tips. The Danish Competition Council ruled in the case in June 2015. In September 2015, the Danish Competition Appeals Tribunal upheld the ruling and the case was afterwards handed over to the State Prosecutor.

Last updated: 11. maj 2016