The main elements of the package are an amendment of the Danish Competition Act and the introduction of a new Act on the enforcement of the public procurement rules.
The most essential features are:
Lowering of thresholds for merger control whereby more concentrations will become subject to merger control
The merger control turnover thresholds are reduced:
- The (upper) combined turnover threshold for the undertakings concerned is reduced from DKK 3.8bn to DKK 900m
- The (lower) turnover threshold for the individual undertaking concerned is lowered from DKK 300m to DKK 100m
Introduction of simplified merger clearance procedure for straightforward mergers
If a merger does not raise any competition concerns, the undertakings concerned will in future be allowed to provide fewer and less detailed information on especially market conditions in connection with merger notifications. The competition authorities will also be able to approve straightforward mergers on the basis of a simplified and expedited merger clearance procedure.
The time-limits for clearance of complex mergers are extended.
The time-limit for clearance of complex mergers is extended so that the Danish Competition Authority during the next clearance phase (phase II) will have 90 working days to clear such mergers.
Other significant tightening of the Danish Competition Act
Market and customer sharing agreements as well as agreements to limit production will in future be strictly prohibited for all undertakings
Market and customer sharing agreements as well as production limitation agreements will in future – just like pricing arrangements and bidrigging - be unequivocally prohibited for all undertakings, large and small. This will bring the Danish rules in line with the EU Commission's rules.
The book market will be fully liberalised and thus become subject to the same competition regulation as other industries.
The existing interim arrangement under the Competition Act allowing fixed resale prices on books will be abolished. This means that the Danish book market will be fully liberalised.
The Consumer Ombudsman will be allowed to represent groups of consumers and small undertakings in actions for damages as a result of violation of the Danish Competition Act.
Class action lawsuits have been possible in Denmark since 1 January 2008. With the incorporation of the class action rules into the Danish Administration of Justice Act it was also made possible for the Consumer Ombudsman to be appointed group representative, subject to his appointment being in accordance with the law.
The intention behind the introduction of authority to the Consumer Ombudsman to act as group representative is to make it easier for the consumers and small undertakings to seek damages for the losses they have incurred as a result of an undertaking's violation of the competition rules.
The sanctions for gross violations of the procurement rules are extended. The Complaints Board for Public Procurement will for instance be allowed to declare a contract void and to impose pecuniary sanctions. The amendment will allow the Complaints Board to intervene effectively when the procurement rules are flouted.
Entry into force
The new rules will enter into force on 1 October 2010. The rules on the liberalisation of the book market will, however, not enter into force until 1 January 2011.