Danish Train Spare Parts Distributor to Pay Fine in Long-Running Competition Case

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Danish train spare parts distributor Diesel Motor Nordic has announced that it intends to pay a fine of DKK 1 million for its role in a competition law case involving German engine manufacturer Deutz AG, concluding a major chapter in one of Denmark’s most protracted antitrust disputes. The case centered on conduct that forced Danish State Railways (DSB) to purchase train spare parts at inflated prices while causing repair delays that left multiple IC3 trains out of service, disrupting rail traffic and inconveniencing passengers.

According to the Danish Competition and Consumer Authority, Diesel Motor Nordic and Deutz unlawfully blocked rival supplier Fleco from obtaining the specialized Deutz spare parts required to refurbish engines in DSB’s IC3 trains. Fleco had been part of the consortium awarded the maintenance contract by DSB in 2010. By denying supply and preventing parallel imports from alternative suppliers, the two companies effectively shut Fleco out of the market.

Deputy Director General Tine Rønde said the companies “prevented a competitor from gaining access to the unique spare parts needed to refurbish IC3 trains,” adding that the conduct forced DSB to buy the parts at higher prices from Diesel Motor Nordic. She noted that the resulting delays kept trains out of service longer than necessary, to the detriment of passengers.

The evidence in the case included internal correspondence showing that Diesel Motor Nordic misled the consortium by claiming spare parts had to be returned to Deutz for safety approval, when in reality the parts were allegedly being hidden “in a corner or in the attic” to protect Diesel Motor Nordic’s business with DSB.

The Danish Competition Council first ruled against the companies in June 2013, finding that Deutz had refused to supply spare parts and restricted parallel imports in coordination with Diesel Motor Nordic. That decision was upheld by the Competition Appeals Board later that year, by the Maritime and Commercial Court in 2021, and ultimately by the Danish Supreme Court in 2024 after a lengthy appeals process.

While Diesel Motor Nordic has now indicated it will pay the fine, criminal proceedings against Deutz AG, including the determination of sanctions, remain pending before the courts.

The case was prosecuted under the pre-2021 Danish competition enforcement regime, under which criminal sanctions for competition infringements were handled by the National Unit for Serious Crime rather than the Danish Competition and Consumer Authority.