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Fatima Shahid

Consulting Firm Fined 20 Million Kroner for Involvement in Nightclub Cartel

26.01.2025 | Danish competition authority

Ecit Account has been fined 20 million kroner for facilitating a long-standing cartel among nightclubs, which restricted their ability to open branches in each other's areas.


The Danish Competition and Consumer Authority has imposed a fine of 20 million kroner on Ecit Account for its role in maintaining a cartel among several nightclubs. This cartel, which has been in existence for over 15 years, involved agreements that prohibited nightclubs from opening branches within certain geographical areas.

According to Jakob Hald, the director of the authority, Ecit Account played a significant role in formalizing and sustaining this illegal arrangement. The company was involved in the board of the nightclubs' joint purchasing company, where it helped draft the cartel's agreement and facilitated meetings to discuss the illegal market division.

The Maritime and Commercial Court emphasized the seriousness of the offense, stating that it is illegal for any company to assist in the formation and maintenance of a cartel, even if they are not active in the market affected by the cartel. The court noted that Ecit Account's actions constituted a clear and long-term violation of competition law.

In determining the fine, the court considered the severity and duration of the violation, as well as Ecit Account's global revenue. However, it was noted that the company did not gain financially from facilitating the cartel and was not the initiator of the cartel, which were seen as mitigating factors.

This case is part of a larger investigation into the nightclub cartel that the Danish Competition Council intervened in back in 2021. Previously, 22 nightclubs and their joint purchasing company had admitted to violating competition law and accepted fines. In 2023, the Council concluded that Ecit Account had participated in the market-sharing agreement, leading to the court's decision to impose a fine.

This ruling marks the first instance of a civil fine being imposed for a violation of competition law since the law was amended in spring 2021.

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