When companies bid jointly

Call for tenders regarding public and private contracts are organized in order to create competition for the tendered contract. In certain cases undertakings jointly bid for a public or private contract. Often these forms of cooperation are called “consortia agreements” even though the designation of the cooperation is not decisive for the assessment of the agreement under the competition rules. In Denmark, this type of cooperation is quite common and can be valuable for public as well as private contracting entities. However, this requires that such a cooperation does not in practice restrict competition thereby infringing the Competition Act, but rather that it creates value for the customers.