A Danish Court imposed a fine on a dairy company for abusing its dominant position via a marketing contribution (Arla Foods)

Background Arla Foods Amba (“Arla”) is Denmark's largest diary company with an annual turnover in 2003-2004 of DKK 47,608 million (EUR 6,390 million). Hirtshals Andelsmejeri (“Hirtshals”) is a smaller diary company in competition with Arla. In October 2003 Hirtshals contacted the Danish Competition Authority (“DCA”) and complained that it had entered into a cooperation agreement with Metro Cash and Carry ApS (“Metro”) a large wholesale supermarket, but that Metro had cancelled the cooperation after only a few days' deliveries. Hirtshals suspected that Arla was behind this. The DCA carried out dawn raids (unannounced inspections) at the premises of Arla, and found documents showing that Arla had granted Metro a marketing contribution on condition that Metro ceased its cooperation with

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Author

  • Danish Competition and Consumer Authority (Copenhagen)

Quotation

Jacob Borum, A Danish Court imposed a fine on a dairy company for abusing its dominant position via a marketing contribution (Arla Foods), 10 February 2006, e-Competitions February 2006, Art. N° 17425

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