Fine of DKK 20 Million imposed on Consultancy Firm for participation in Nightclub Cartel

Director General of the Danish Competition and Consumer Authority, Jakob Hald, says:

For over 15 years there has been an agreement between several nightclubs not to open nightclubs in each other’s cities or within a specified radius. Ecit Account helped to formalize and maintain this cartel throughout the whole infringement period. Through its chairmanship in the nightclubs’ joint purchasing company, Ecit Account has been responsible for drafting the membership conditions for the joint purchasing company, which included the market sharing agreement, as well asparticipating in meetings where the illegal market sharing was discussed.

The Court emphasizes that it is illegal to participate in establishing and maintaining a cartel – even for undertakings that are not active on the market where the cartel operates.

The Maritime and Commercial Court states in its judgment:

“The infringement in this case is serious in itself, as ECIT Account has deliberately facilitated a clear and long-term illegal geographical market sharing.”

The Maritime and Commercial Court has fined Ecit Account DKK 20 million for contributing to an agreement between several independent nightclubs and their joint purchasing company to divide the market. Ecit Account has contributed to the cartel throughout it entire duration.

Ecit Account provides administrative and IT services to companies. As a consultancy firm, Ecit Account has contributed to formalize and maintain the illegal agreement to divide the market between several nightclubs. Among other things, Ecit Account has:

• Had a leading role on the board of the purchasing company.,
• drafted the market sharing agreement as well as ensured that the market sharing agreement was respected by the nightclubs, and
• actively participated in meetings where the market sharing agreement was discussed.

In setting the fine, the Maritime and Commercial Court has taken into account the serious nature and duration of the infringement, as well as the Ecit Group’s global turnover. The court also found that it cannot be assumed that Ecit Account has had a financial gain from facilitating the cartel, and that Ecit Account was not the initiator of the cartel, which the court considered as mitigating circumstances.

The case against Ecit Account is part of a larger case complex concerning a nightclub cartel, which the Competition Council intervened against in 2021. Previously, a total of 22 nightclubs and their joint purchasing company have admitted to infringing the Competition Act and accepted to pay fines. In 2023, the Competition Council decided that Ecit Account had participated in the market sharing agreement and that a fine should be claimed in connection with the following court proceedings.

This is the first time a fine has been imposed under civil procedure for an infringement of the Competition Act since the Competition Act was amended in spring 2021.

For further information

Contact the Head of Communications at the Danish Competition and Consumer Authority, Hanne Arentoft, at the phone number +45 41 71 50 98. 

Links

• Read the Maritime and Commercial High Court’s judgement here (in Danish).