Danish Court Rules FK Distribution Abused Market Power After Becoming Sole Nationwide Distributor

Copenhagen, May 27, 2025 — Denmark’s Maritime and Commercial Court has ruled that FK Distribution abused its dominant position in the market for unaddressed mail, following its emergence as the sole nationwide provider after PostNord exited the business.

The court upheld a previous decision by the Danish Competition Council, which found that FK Distribution (Forbruger Kontakt A/S) unlawfully tied the sale of physical brochure distribution to the purchase of digital display services on its own platform, such as minetilbud.dk, effectively sidelining digital competitors.

Tine Rønde, Deputy Director General at the Danish Competition and Consumer Authority, said the ruling ensures that FK Distribution’s customers are now free to choose where they purchase digital brochure display services.

“By linking physical distribution to digital display, FK Distribution restricted competition in a growing digital market,” Rønde said. “This harmed rivals operating digital catalogue platforms and forced customers to buy services they didn’t want from FK Distribution.”

The court found that between 2018 and October 2019, FK Distribution imposed conditions that required customers purchasing physical distribution services to also buy digital display services from the company. As a result, major advertisers had limited choice, even when they preferred to use competing digital platforms.

The judgment noted the competition authorities had conducted “a thorough review” of the case and exercised “a competitive discretion that is not certain to be overridden.” However, a minority of the judges dissented, questioning whether the relevant market was correctly defined and if FK Distribution’s conduct truly limited competition.

The case marks a significant precedent in Danish competition law, representing the first time a company has been sanctioned for using dominance in a traditional market—physical advertising distribution—to entrench itself in an adjacent and rapidly growing digital market.

The Competition Council originally ruled on the case in 2020, and its decision was upheld by the Danish Competition Appeals Board in 2021. A potential criminal prosecution, previously put on hold, is now expected to proceed following the court’s judgment.

For more information, contact Hanne Arentoft, Head of Communications at the Danish Competition and Consumer Authority, at +45 41 71 50 98.

Source: https://kfst.dk/pressemeddelelser/kfst/2025/20250526-soe-og-handelsretten-fk-distribution-har-misbrugt-sin-dominerende-stilling

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