The Committee for Amendment of the Merger Control Rules

In January 2008 the Danish government set up a merger committee with representatives from a series of trade organizations, the Danish Consumer Council, the Economic Council of the Labour Movement and competition law experts. The committee’s mandate was to assess whether the Danish merger control rules are as efficient as the merger control rules in countries that Denmark normally is compared to.

The Danish turnover thresholds decisive for notification of a merger are very high compared to turnover thresholds in other such countries. This implies a significantly higher risk of anti-competitive mergers being concluded in Denmark with no possibility for the authorities to intervene. The risk of anti-competitive mergers constitutes a problem as such mergers may have a negative impact on both consumers and companies in the form of higher prices, poorer quality and less innovation.
The Committee delivered its findings in a report to the government on 16 December 2008.

In the report the Committee recommends as follows:

  • A significant reduction of the turnover thresholds decisive for notifying a merger. It is recommended that the upper turnover threshold is reduced to DKK 900 million, contrary to DKK 3.8 billion today, and that the lower threshold value is reduced to DKK 100 million, contrary to DKK 300 million today.
  • Introduction of a simplified procedure for notifying and handling/approval of unproblematic mergers. It is recommended that the companies may provide less information when notifying the Danish Competition Authority of an unproblematic merger. Further, it is recommended that the Competition Authority may approve such mergers without in-depth investigations. The recommended procedures would be very similar to the EU Commission’s simplified procedure. The Committee has estimated that approximately 50 per cent of all mergers that must be notified according to the reduced turnover thresholds could be notified according to the simplified procedure. Further, the Committee has estimated that approximately 50 per cent of all notified mergers could be approved without in-depth investigations.
  • Extension of the deadlines within which the Competition Council must finalise its case handling regarding mergers. It is recommended that the deadline is extended by two months allowing the Competition Council more time to try problematic mergers. Unproblematic mergers would be handled within 25 working days.

    The Danish Competition Authority expects that the government will propose amendments to the Danish Competition Act in accordance with the findings of the Committee for Amendment of the Merger Control Rules in the beginning of 2010. Consequently, a new merger control regime is expected to come into force during the second half of 2010.