In a ruling, the Danish Competition Council has conditionally approved Uber’s merger with Denmark’s largest taxi firm, Dantaxi, requiring Uber to sell off a substantial portion of the business. The decision marks the first time Danish antitrust authorities have ever intervened in a deal that had already been executed, as well as the first application of “call-in” powers allowing regulators to review mergers falling below standard turnover notification thresholds.
The Danish Competition and Consumer Authority determined that allowing the transaction to stand unaltered posed severe risks of market distortion, particularly in and around Copenhagen. According to regulators, an unconditioned merger threatened to eliminate head-to-head competition, potentially driving up passenger prices, lowering service standards, imposing harsher conditions on independent hauliers, and creating formidable entry barriers for rival operators.
To alleviate these competitive concerns, Uber submitted a legally binding commitments package centered around structural divestments and operational safeguards. Key obligations under the agreed remedies include:
The sale of one of Dantaxi’s primary dispatch offices along with its operating license, the official Dantaxi trademark, the company website, and selected corporate client relationships.
The transfer of booking channels associated with the business, including the Dantaxi mobile app and the well-known 4×48 telephone dispatch service.
The divestment of underlying haulier contracts representing a significant portion of the active taxi fleet.
Operational guarantees ensuring business continuity during the transition phase, alongside technical assistance during the asset transfer.
Mandatory adjustments to the retained business, shortening contract durations and notice periods for hauliers to allow drivers to switch to competing platforms more easily.
Christian Schultz, Chairman of the Danish Competition Council, noted that Uber’s prior partnership with local provider Drivr had injected dynamic rivalry into a historically static market. However, absorbing Dantaxi removed that competitive pressure, forcing regulatory action.
Uber must now appoint an independent monitoring trustee to oversee compliance while searching for an approved third-party buyer for the divested Dantaxi assets.
