The intention of competition law, as specified in the Danish Competition Act, is to promote effective societal use of resources through competition benefiting businesses and consumers alike.
The area is the subject of intensive public and political interest, which manifests itself in continuous amendments to the applicable rules. This interest also means that any contravention of the competition rules by business interests gives rise to serious, and negative, comment.
The competition rules embody two prohibitions of significant practical importance, namely a prohibition against anti-competitive agreements and a prohibition against abuse of a dominant position.
The prohibition against anti-competitive agreements means that it is prohibited to enter into anti-competitive agreements, such as, for example, agreements covering prices or other business terms, market-sharing agreements and agreements covering coordinated business conduct.
The prohibition against abuse of a dominant position relates to the situation where one (or more) businesses abuse a dominant market position, by, for example, imposing unreasonable buying and selling prices, including binding resale prices, refusing to supply and engaging in price discrimination.
Businesses contravening the rules risk incurring criminal liability as well as civil liability for damages.