The Copenhagen City Court has imposed a fine of 10 million kroner (€1.3 Million) on AFA Decaux A/S for violating the Danish Competition Act by coordinating discount rates with competitor Clear Channel Denmark for over six years. The court found that this conduct limited competition in the outdoor advertising sector, affecting advertisers purchasing services at bus stops, train stations, and airports.
According to Tine Rønde, Deputy Director General of the Danish Competition and Consumer Authority, “For more than six years, the two companies coordinated their discount rates without the customers knowing that it was at their expense. This is a serious and long-standing violation of the Competition Act. There were no written agreements about the coordination throughout the entire period, but the companies continued their practice, and the case highlights that companies should set their own prices.”
The illegal coordination involved discounts for media commission, information compensation, and collateral, and, between September 2008 and December 2011, included coordinated cash discounts. The coordinated pricing deprived advertisers of the benefits of competition and ensured that the companies maintained control over pricing in the market.
In determining the fine, the court emphasized the seriousness and duration of the violation, considered the group turnover of AFA Decaux, and took into account that part of the violation occurred before the enhanced penalty regime introduced on 1 March 2013.
The case has a long history. In 2018, the Danish Competition Council ruled that both AFA Decaux and Clear Channel had violated the Competition Act. The decision was upheld by the Competition Appeals Board in 2019. However, in 2021, the Maritime and Commercial Court initially limited the violation to periods with written contracts between the two companies. This ruling was later overturned by the Eastern High Court in 2023, confirming that the infringement had persisted for more than six years.
Earlier, in April 2024, Clear Channel Denmark admitted to its role in the violation and agreed to pay an extrajudicial fine of 6 million kroner (€780,000).
As the case predates amendments to the Competition Act in 2021, the National Unit for Serious Crime (NSK) handled the criminal proceedings following a report by the Competition Council. Under the current regime, the Danish Competition and Consumer Authority would have been responsible for enforcing the fine.
