38 Venues Receive an advisory notice on Competition Rules

Deputy Director of the Danish Competition and Consumer Authority, Tine Rønde, stated:                                     

We have, of course, read what was written in the press and have since gathered extensive material. It is our initial impression that the venues’ conduct have in many cases been problematic, and we have decided to emphasize the importance of complying with the competition rules.

For now, we will not pursue the case further. This reflects an overall prioritization, including an assessment of the resources such a case would require and the expected effects in the market. We will still monitor the market and have the option to reopen the case at a later date if new information justifies it.

The venues are independent businesses. They may enter agreements with a public authority that obligate them to collaborate with other venues. However, when competitors participate in purchasing cooperations or trade associations, they must always be careful not to exchange competition-sensitive information or coordinate behavior, such as purchase and sale prices.

38 municipal venues have been reminded of the prohibition against agreements that restrict competition. This action follows inspections and information gathering at several of the venues by the Danish Competition and Consumer Authority.

The Danish Competition and Consumer Authority has conducted preliminary investigations of the collected documents. The evidence suggests that the venues may have coordinated purchase and sale prices as well as other contractual terms and divided markets among themselves. It also indicates that the venues may have shared competition-sensitive information about competitive parameters with each other, particularly within the framework of purchasing cooperations or trade associations.

Based on this, the Danish Competition and Consumer Authority has decided to issue an advisory notice to the venues. The advisory notice includes guidance on the competition rules and emphasizes that the venues must ensure their actions comply with these rules.

With this advisory notice, the Danish Competition and Consumer Authority has also decided not to pursue the case further. No decision has been made regarding the legality of the venues' conduct. The Danish Competition and Consumer Authority assesses that it would require significant additional resources to sufficiently pursue the case, and that competition in the market can be strengthened by merely issuing an advisory notice. However, the decision to close the case does not prevent the Danish Competition and Consumer Authority from reopening it at a later date if new information emerges.