Denmark updates

Competition & Antitrust

Contributed by Gorrissen Federspiel
Pharmaceutical distributor found guilty of excessive pricing
  • Denmark
  • 16 July 2020

The Maritime and Commercial High Court recently found that a pharmaceutical distributor had abused its dominant position in Denmark by charging excessive prices (a price increase of 2,000%). The pharmaceutical sector has received increased scrutiny from the competition authorities in recent years. The case is particularly relevant to the application of competition law during the COVID-19 crisis, as even short periods of dominance are sufficient to establish abuse of a dominant position.

Western High Court judgment on simplified notifications in merger control
  • Denmark
  • 14 May 2020

The Western High Court recently upheld a Danish Competition and Consumer Authority (DCCA) decision on merger notification forms. As a result of this ruling, even if a merger meets the criteria for simplified notification, the DCCA can require a standard notification if it cannot determine that no competition concerns will arise based solely on the simplified notification.

Merger control time limit suspension extended
  • Denmark
  • 30 April 2020

On 16 March 2020 significant parts of Denmark's public administration were shut down as a result of the COVID-19 pandemic. Although the shutdown has begun to ease up, the merger control time limit suspension remains and has been extended by executive order until 10 May 2020.

DCCA enforcement: merger control suspended
  • Denmark
  • 02 April 2020

As the COVID-19 pandemic spreads across Denmark, merger control has come to a temporary standstill and significant parts of the country's public administration have already been shut down for three weeks. However, the Danish competition authorities are adamant that competition law remains in force and will prioritise enforcement against companies that take advantage of the current situation through illegal behaviour, such as coordinating prices or limiting the production of certain goods.

Supreme Court judgment on legality of consortium agreement
  • Denmark
  • 23 January 2020

The Supreme Court recently rendered a much-anticipated judgment on the legality of consortium agreements under competition law. The court repealed a Maritime and Commercial High Court decision from 2018 in a case concerning a consortium agreement between two companies regarding their joint bid on a public tender for road marking work. This ruling marks an increasingly restrictive practice, which may affect forms for cooperation other than consortia.


Employment & Immigration

Contributed by Norrbom Vinding
Anti-discrimination Act disputes: full and final settlements
  • Denmark
  • 08 July 2020

The Western High Court recently ruled that an employee who had entered into a severance agreement – and was represented by her professional organisation during this process – was barred from claiming compensation under the Anti-discrimination Act. Pursuant to this ruling, employers should bear in mind that when a severance agreement contains a provision in full and final settlement of any possible claims between the employee and employer, the provision must be interpreted according to its wording.

COVID-19: political agreements on expansion and extension of economic stimulus packages and new measures
  • Denmark
  • 27 May 2020

The government and Parliament recently made a series of political agreements to expand and extend the current economic stimulus packages regarding COVID-19, including the compensation schemes regarding wages and fixed costs, and to implement various new measures. This article outlines the impact of these agreements on employers and employees during the COVID-19 crisis.

COVID-19: bill and executive order on wage compensation for private sector enacted
  • Denmark
  • 22 April 2020

The government has enacted a bill on wage compensation for private sector employers. In addition to the act, the Ministry of Industry, Business and Financial Affairs has issued an executive order on the wage compensation scheme. The bill and executive order reflect the agreement between the government and the social partners regarding wage compensation for businesses which, as a consequence of the current economic situation, are facing dismissals.

COVID-19: changes to rules on distribution of work
  • Denmark
  • 08 April 2020

As part of its COVID-19 measures, the government has adopted changes to the Executive Order on Payment of Unemployment Benefits to facilitate the implementation of distribution of work plans. Distribution of work plans can be implemented to allow employees to receive supplementary unemployment benefits during the period in which the plan is in force (up to 13 weeks).

Coronavirus – enhanced right to receive and be reimbursed for sickness benefits
  • Denmark
  • 01 April 2020

A bill amending the Sickness Benefits Act has recently been enacted to mitigate the economic consequences of the coronavirus (COVID-19) pandemic for employers and self-employed persons. The bill extends the scope of employers' right to reimbursement of sickness benefits and self-employed persons' right to receive sickness benefits, provided that the sickness absence is caused by COVID-19.


Energy & Natural Resources

Increased focus on geothermal energy
  • Denmark
  • 02 March 2020

Geothermal energy has long been used for district heating in Denmark, but lately political and industry interest therein has been on the rise. This has resulted in an increase in applications to explore for and produce geothermal energy. Since 2017, five new exploration licences have been granted and five additional licences are currently being assessed by the Danish Energy Agency. Geothermal energy will help to fulfil the political goal of a carbon-neutral Denmark by 2050.

Uncertainties regarding eighth tender for oil and gas exploration in Danish North Sea
  • Denmark
  • 25 November 2019

The Ministry of Climate, Energy and Utilities recently invited companies to take part in the eighth Danish licensing round for oil and gas exploration and production in the Danish North Sea. Licences were expected to be issued this summer, but political pressure on the government elected in June 2019 means that the eighth licensing round's future is uncertain.

New government announces climate and energy plan
  • Denmark
  • 05 August 2019

The new government has raised the bar for climate and environmental goals with the aim of making Denmark the world leader in the transition to renewable energy. The government's climate plan calls for a significant focus on the use of wind energy and a new agreement goes even further than the 2018 energy agreement, with plans for an offshore energy island with a capacity of at least 10GW.

New 800MW to 1000MW offshore wind farm up for tender
  • Denmark
  • 01 April 2019

The signatories to the Energy Agreement recently decided the location of the first of three new offshore wind farms that will be put up for tender. Unlike previous projects in which the government was responsible for developing the offshore site and preparing the grid connection, the new wind farm will be procured through a procedure in which the winning tender will be responsible for developing and preparing the grid connection.

New energy agreement allocates Dkr19 billion for green energy
  • Denmark
  • 27 August 2018

The government and all parties in Parliament recently entered into an agreement which entails a major commitment to developing green energy by 2030. The agreement contains a broad range of green initiatives and tax reliefs on electricity which aim to encourage Danish consumers to swap fossil fuels for green electricity. Similarly, the planned modernisation of the heating sector aims to provide both companies and consumers with greener and cheaper heating.


Environment & Climate Change

Climate proposal has implications for transport sector
  • Denmark
  • 17 December 2018

The Danish Energy Agency estimates that Denmark must reduce its greenhouse gas emissions by between 32 million and 37 million tons by 2030 to reach its EU climate goals. To this end, the government recently published a new proposal regarding climate and air policy. The proposal contains 38 specific initiatives and mainly addresses the transport sector, agricultural production, shipping and green transitioning in housing and industry.


Insurance

Contributed by WSCO Advokatpartnerselskab
Putting out fires: hot work and insurance coverage for fire damage
  • Denmark
  • 30 June 2020

The execution of 'hot work' (ie, work which carries the risk of fire) often results in fires. Therefore, anyone who executes or arranges for the execution of hot work should be aware of how damages and possible liability for damages can be avoided. Hot work insurance policies should also be thoroughly examined. This article highlights the rules that craftspeople, contractors and clients must consider before and during the execution of hot work, as well as the associated liability issues.

Smooth sailing? Jurisdiction agreements in yacht insurance contracts
  • Denmark
  • 23 June 2020

A new ruling determines that prorogation of jurisdiction can be validly agreed in a yacht insurance contract, even where consumer interests are concerned and the contract requires that legal proceedings be brought in a court in the insurer's home country. Pursuant to the ruling, a private policyholder who is an EU citizen and purchases boat insurance in another EU country is bound by the jurisdiction agreement in the insurance contract.