What is the penalty?
Cartel agreements and other kinds of agreements which restrict competition between companies are prohibited because they can lead to higher prices and fewer choices for consumers. Therefore, companies involved in such anti-competitive agreements can be sanctioned with multi-million-kroner fines. Natural persons can also be sanctioned with fines and imprisonment.
Cartel agreements constitute serious economic crime
Cartel participation constitutes a very serious infringement of the Danish Competition Act. Companies can be sanctioned with fines of more than DKK 20 million for having participated in a cartel. In some cases, however, there may be mitigating circumstances, in which case the fines may be lower.
It is not only the company that can be sanctioned. Executives and board members may also be sanctioned with fines of up to several hundred thousand kroner. In addition, persons who enter into cartel agreements or seek to initiate or otherwise contribute to a cartel agreement can also be sanctioned with imprisonment. In serious cases, cartel agreements are sanctionable by 1½ years of imprisonment. In the case of particularly aggravating circumstances, the penalty may rise to 6 years of imprisonment.
Other kinds of infringement of the Danish Competition Act
Cartel agreements are not the only crime sanctioned under the Danish Competition Act. Other kinds of infringements of the Act, such as resale price maintenance or abuse of a dominant position, can also be sanctioned by large fines for the company and its executives and board members.