Preface

 

 

Annual Report and Accounts 1998
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1998 was the first year of the new Competition Act, which is based on the same prohibition regime as most other European countries. The new act obviously left its mark on the work of the Authority over the past 12 months.

It was anticipated that the transition regulations of the act would involve many applications and the expectations were more than fulfilled. The Authority received more than 1000 exemption applications ­ most of them in the days leading up to 1st July. Based on experience from other countries, the Authority has set a goal that all applications will be considered by the end of the year 2001.

The "cartel cases" attracted attention during the year. The EU Commission heavily fined Danish undertakings which had participated in the preinsulated pipes cartel. Further, in Denmark a very extensive cartel cooperation within the electrician trade was disclosed. In that connection, the Authority for the first time conducted unannounced control inspections

of the undertakings in question. Shortly after these "dawnraids", a number of the large undertakings showed their hands and produced material, which contributed to clearing up the matter.

The Authority is also responsible for issues concerning price and supply in the energy sector. In the electricity sector, the most significant cases have been in connection with the energy reform, which is due to be implemented in the near future. Because of the coproduction of electricity and heating, the reform will also influence the heating sector.

In the field of public procurement, the Authority offers its support to Danish undertakings that encounter problems with public procurement abroad. At the initiative of the Authority, a pilot project has been initiated which aims to ensure that the public procurement regulations are interpreted in the same manner throughout Europe. The project, which is referred to as "the Danish initiative" is receiving helpful support from the Commission and other European Countries.

The Authority has carried on the work initiated in 1997 of focusing the organisation more on development. Experience shows that creating a good workplace environment based on clear values may also be the best way to promote external credibility and efficiency.

It is of significance to the undertakings and their advisors that they are promptly informed of decisions, which interpret the Authority's code of practice. All significant decisions are available on our homepage. The site also includes press releases and all guidelines and reports issued by the Authority. Altogether, the Authority attaches great importance to prompt and correct information. Therefore it is gratifying that our news publication "KonkurrenceNyt" received positive assessment in the reader survey that was conducted in 1998.

Equally gratifying was the result of the survey made among undertakings and advisors that had had

dealings with the Competition Authority. The survey reflected a high degree of satisfaction in most areas, also compared to other similar surveys. However, this does not mean, that there is no room for improvement. Therefore we have initiated efforts to strengthen the quality in the decisions.

The productivity of the Authority has rose further in 1998. Despite the large increase which was achieved last year.

I am pleased to record that during this busy and exciting year, the Competition Authority has lived up to the agreement that was made in the first actual performance contract.

 

Copenhagen, May 6, 1999

Finn Lauritzen

 

 

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