The Danish competition authority, known as the Competition Council, has determined that Botex, a cooperative of home textile stores, violated competition law by maintaining an illegal agreement for at least 12 years. This agreement limited the stores' ability to market themselves in each other's areas, ultimately weakening competition both among Botex stores and against other market competitors.

According to Christian Schultz, the chair of the Competition Council, the stores' collaboration on purchasing does not exempt them from being competitors. The restrictions on marketing hinder consumer access to information, which can lead to higher prices, poorer service, lower quality, and a more limited selection of products.

The Competition Council's ruling states that Botex had an agreement that prohibited the distribution of advertisements to households in each other's designated areas, which were assigned based on postal codes. This illegal agreement was in effect from May 2009 until August 2021 and was interpreted to include other forms of marketing beyond just household advertisements.

The Competition Council has ordered Botex to immediately cease this illegal behavior and refrain from similar actions in the future. Additionally, the Council plans to bring the case before the Maritime and Commercial Court to impose a fine on Botex.

This case was initially decided in June 2022, but Botex appealed the decision to the Competition Appeals Board, which in October 2023 remanded the case back to the Competition Council for further review. The new ruling addresses key questions raised by the Appeals Board regarding whether Botex's actions had anti-competitive intent, referencing the European Commission's horizontal guidelines.

The recent decision also considers a new ruling from the Maritime and Commercial Court that supports the Competition Council's earlier findings on when an agreement can be deemed illegal. In that case, a group of nightclubs was found to have engaged in market-sharing agreements that restricted competition, reinforcing the notion that such arrangements are inherently harmful to competition, even if they involve cooperative purchasing.

Botex operates as a nationwide voluntary chain consisting of 24 independent members, each owning one or more Botex stores or curtain buses, selling home textiles including curtains, sun shading, towels, bedding, and duvets in retail.