The Maritime and Commercial Court in Denmark has fined (27 January) consultancy firm Ecit Account A/S 20 million kroner (USD 2,811,000) for its co-responsibility in maintaining a cartel among discotheques. For over 15 years, the company played a key role in facilitating illegal agreements that restricted competition, violating the Danish Competition Act.
A Decade-Long Cartel
The cartel, which involved multiple discotheques, enforced agreements to avoid opening branches in each other’s cities or within specific distances. Ecit Account was instrumental in creating and maintaining these unlawful arrangements. As chairman of the discotheques’ joint purchasing company, the consultancy formalized the cartel’s framework, drafted agreements, and hosted meetings to discuss the illicit market-sharing strategy.
Jakob Hald, Director of the Danish Competition and Consumer Authority, emphasized the significance of the ruling:
“This case demonstrates that it is illegal to participate in forming and maintaining a cartel, even for companies not directly active in the affected market.”
Court Ruling Highlights Seriousness of Offense
In its judgment, the Maritime and Commercial Court described Ecit Account’s actions as a deliberate and long-term facilitation of illegal geographical market sharing. The fine reflects the gravity and duration of the infringement, as well as Ecit Group’s global revenue.
Mitigating factors considered by the court included the consultancy’s lack of financial gain from the cartel and its non-initiating role in the scheme. However, these factors did not absolve the company of its responsibility in perpetuating the unlawful practices.
A Landmark Decision
This case marks a milestone as the first civil fine imposed by judgment under the amended Danish Competition Act of 2021. The ruling follows a broader investigation initiated by the Danish Competition Council in 2021, which previously led to fines against 22 discotheques and their purchasing company for similar violations.
Ecit Account’s penalty underscores the Danish Competition and Consumer Authority’s commitment to addressing anti-competitive behavior and holding facilitators accountable.
