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Competition in Denmark is slowly improving

16. juni 2008

Competition Report 2008 is released today. The Danish Competition Authority takes stock of the Danish competitiveness and focuses on the taxi industry, the pension sector and the retail market for electricity.

The report shows, that, in recent years, competition pressure in Denmark has improved slightly, pimarily in the trades with the most substantial competitive problems. The number of trades showing signs of substantial competitive problems has decreased significantly since 2001 and constitutes 35 this year. As regards the majority of the branches selected, the competitive problems, in greater or lesser extent, are due to public regulation.

”I am pleased that things are progressing. Efficient competition ensures that consumers receive optimal value for money and, thus, are the driving force as regards growth in the entire society. But it is a long haul until competition is adequate. Therefore, we focus on intensifying competition”

Director General, Agnete Gersing says.

An average Dane still pays approximately 10,000 DKK more a year for purchases of goods and services than consumers in comparable EU countries with prices adjusted for taxes and cost of living index. Among other things, the price difference is due to the fact that competition in Denmark is not as intense as in the other EU9 countries, but differences in consumer preferences, shop and sale structure, including quality might also be part of the explanation.

It is a matter of taking a strong line against cartels and other violations of the Competition Act, reducing the scope of anti-competitive regulation and improving the competition culture, in general,” Agnete Gersing explains. ”A prosperous competition culture makes demands on both consumers and companies. It is, therefore, crucial that consumers play an active and critical role, and that the companies compete against each other on price and quality.”

Analyses in Competition Report 2008 make it clear:

That due to competitive aspects, there is a need of focusing on a liberalization of the taxi industry.
That a series of appropriate measures has to be taken as regards a need of ensuring an increased transparency and a more efficient competitive environment for the administration of pensions.
That efficient competititon in the retail market for electricity requires increased consumer knowledge, including fewer access barriers for new electricity suppliers to enter the market.
For further information, please contact Director General Agnete Gersing (tel. +45 7226 8001) or Vice Director Christian Ølgaard (tel. +45 7226 8002). 

Competition Report 2008