Denmark: File or get fined – The DCCA to impose a fine due to late merger notification

Written By

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Alexander Brøchner

Associate
Denmark

I'm an associate in our international Competition & EU group in Denmark, advising both national and international clients on Danish and EU competition law.

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Nanna Krabbe

Associate
Denmark

I am an associate specialising in Competition and EU law collaborating closely with talented colleagues to address a wide range of EU competition law matter.

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Morten Nissen

Partner
Denmark

I'm a partner and co-head of our international Competition & EU group. I also lead the Competition & EU team in Denmark. I have a particular focus on applying competition & EU law as a tool to achieve specific and measurable business objectives for our clients.

The Danish Competition and Consumer Authority (“DCCA”) has issued a decision finding that an international shipping company and its subsidiary infringed the Danish Competition Act’s provisions on merger control when the subsidiary acquired the company Pilot Air Freight Holdings LLC (“Pilot Air Freight”), as the parties had not filed a merger application prior to closing.

The subsidiary, a provider of supply chain management services, entered into a security purchase agreement of 5 September 2022, leading to the acquisition of Pilot Air Freight, a smaller company within the same industry. The transaction was finalised on 2 May 2022, after being approved by the US competition authorities.

Subsequently, in June 2022 the international shipping company and its subsidiary contacted the DCCA to inform them about the transaction after recognising that the acquisition was subject to mandatory merger notification as the relevant Danish turnover-based thresholds were exceeded.

Following the parties’ information of the transaction to the DCCA, the transaction was filed on 7 October 2022 and was subsequently finally approved by the DCCA.

As it follows from the Danish Competition Act section 12c(5) that a merger subject to mandatory merger notification must not be implemented before it is cleared by the DCCA, the merger was unlawful in the period from 2 May 2022 until 7 October 2022.

The DCCA will proceed with the case to determine a possible fine.

The decision by the DCCA serves as a reminder of the importance of conducting a global merger screening before carrying out a merger or acquisition, as such transactions are often subject to multiple mandatory merger filings. The DCCA reiterates their commitment to addressing “gun jumping” as crucial for maintaining an effective merger control regime – and consequently, ensuring effective competition.

For more information, please contact Morten Nissen, Alexander Brøchner or Nanna Sofie Krabbe.

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