News
Scandlines has charged excessive prices on the Rødby–Puttgarden route
The Danish Competition Council has found that Scandlines infringed the Danish Competition Act by charging excessive ticket prices for passenger cars on the ferry connection between Rødby and Puttgarden. Scandlines has thereby abused its dominant position on the route. Until the Fehmarn Belt fixed link opens, Scandlines must submit annual documentation showing that prices for the crossing are not excessive.
Chair of the Danish Competition Council, Christian Schultz, says:
Scandlines has exploited its monopoly position on the ferry route between Rødby and Puttgarden to charge far too high ticket prices for passenger cars. Our calculations show that Scandlines’ returns on transporting passengers travelling with a passenger car have been significantly above the level that can be expected in a market with effective competition. We have prioritised the case because the market conditions are highly exceptional, making it close to impossible to establish a competing operation on commercial terms. A great many consumers have been affected – more than one million passenger cars use the route annually. The sums involved are therefore substantial.
The Competition Act contains rules designed to protect customers of dominant undertakings against excessive prices. Scandlines has infringed those rules, and going forward we have, among other things, ordered the ferry operator to submit annual documentation showing that prices on the route are not excessive. Scandlines must do so until the Fehmarn Belt fixed link opens and Scandlines faces competition for transporting passenger cars across the Belt.
The case has been extraordinarily extensive. Since 2020, we have carried out in‑depth analyses, two market surveys, and processed four rounds of consultation responses and external reports submitted by Scandlines. We have considered Scandlines’ objections, but that does not change our clear assessment that Scandlines charged excessive prices to motorists in 2017–2019.
Scandlines has infringed the prohibition on abuse of a dominant position under the Danish Competition Act. The Danish Competition Council has found that Scandlines charged excessive prices for the transport by ferry of passengers travelling with a passenger car on the Rødby–Puttgarden crossing. The case specifically concerns Scandlines’ conduct in the period 2017–2019.
The Competition Council orders Scandlines to bring the infringement to an end with immediate effect, if it has not already done so. In addition, Scandlines must henceforth document to the Competition Council that it complies with the order. This must be done annually up to the opening of the Fehmarn Belt fixed link, which is expected no earlier than 2032. The obligation to submit documentation should be seen in light of the fact that Scandlines’ prices and returns still appear to be very high.
Undertakings with a dominant position may not exploit their market power to impose excessive prices on customers. To determine whether a price is excessive, the assessment considers whether the price level is significantly and persistently above the level that can be expected under effective competition.
The Danish Competition and Consumer Authority (DCCA) finds that Scandlines’ high prices have resulted in returns that were substantially above a reasonable estimate of a normal return in a market with effective competition. At the same time, the market is characterised by very significant barriers to entry, making it unlikely that other operators can or could establish a competing business on commercial terms.
The DCCA has conducted extensive analyses to examine whether Scandlines’ prices for passenger cars on the Rødby–Puttgarden crossing were excessive. The case has been ongoing since 2020, when the DCCA first informed Scandlines that the authority had opened an investigation. In addition to comprehensive analyses and two market surveys among Scandlines’ customers, Scandlines has submitted four rounds of extensive consultation responses, some of which included external expert reports commissioned by Scandlines. These objections have been taken into account in the Competition Council’s decision.
Scandlines may appeal the Competition Council’s decision to the Competition Appeals Tribunal or to the courts. Any fine will depend on the outcome before those instances. It is the competition authority’s assessment that Scandlines should be sanctioned with a fine.
The full decision will be published once confidentiality issues have been resolved.
For further information
Contact Head of Communications at the Danish Competition and Consumer Authority, Hanne Arentoft, on +45 41 71 50 98..
FAQ for consumers
The decision means that Scandlines has been ordered not to charge excessive prices for passenger cars on the Rødby–Puttgarden crossing. Non‑compliance with an order from the Competition Council is punishable.
The competition authorities will monitor compliance with the rules until the Fehmarn Belt fixed link opens.
If you wish to claim compensation for a possible overcharge, you must bring a civil action before the courts, where it must be proven that the specific ticket you purchased was overpriced.
It is not possible to quantify this in exact amounts. Scandlines’ ticket prices have been dynamic, meaning that individual ticket prices vary depending on season, time of booking and other factors.
The Competition Council has documented that, on average, Scandlines’ ticket prices were excessive. The price level was therefore significantly higher than the level that could be expected under effective competition.
As a consumer, you cannot know precisely whether a price is excessive, because ferry prices are dynamic and vary with season, demand and time of booking.
However, the Competition Council’s decision means that Scandlines must not charge excessive prices, and the competition authorities will continue to monitor developments and can intervene if the order is breached.
The Competition Council’s decision concerns only tickets for passenger cars on Rødby–Puttgarden in 2017–2019. Prices on Scandlines’ other route (Gedser–Rostock) were not included in the analyses, but they must, of course, also comply with the competition rules. That is Scandlines’ responsibility.
The Competition Council has not set specific tariffs, but requires Scandlines to cease charging excessive prices as of today, if it has not already done so. In addition, Scandlines must document going forward that prices are not excessive.
Scandlines’ monopoly on Rødby–Puttgarden route
- Scandlines has had a monopoly on carrying passengers travelling with passenger cars by ferry on Rødby–Puttgarden since 1963.
- It has been possible to maintain the monopoly and high profitability because there are significant barriers for competitors to Scandlines:
- Scandlines owns and operates the ports in Rødby and Puttgarden and has pursued litigation aimed at preventing other ferry operators from gaining access to the ports.
- There are no other nearby ports suitable for ferry operations.
- Establishing new ports would require significant investment.
- The forthcoming Fehmarn Belt fixed link is expected to be a significant competitive constraint on ferry transport of passenger cars between Rødby and Puttgarden, making market entry less attractive.
Prohibition of abuse of a dominant position under the Competition Act
- An undertaking may lawfully hold a dominant position on a market and may compete vigorously with its rivals.
- A dominant undertaking has a special responsibility not to impair effective competition.
- The prohibition on abuse of a dominant position is infringed when an undertaking holds a dominant position on the market and abuses that position in a way that harms competition.
- Abuses typically involve either:
- excluding or foreclosing competitors, for example by offering rivals’ customers particularly large rebates (exclusionary or foreclosure abuses); or
- exploiting the absence of competitive pressure, for example by charging excessive prices to the detriment of consumers (exploitative abuses).
- The Competition Council can order undertakings to cease unlawful conduct.
- Undertakings can also offer binding commitments that address the Competition Council’s concerns about the conduct of a dominant undertaking.
- Undertakings and individuals can be fined for infringing the prohibition on abuse of a dominant position.