During summer 2025, the Danish Competition and Consumer Authority (Konkurrence- og Forbrugerstyrelsen) concluded a case involving anti-competitive practices at Himmelbjerget, one of Denmark’s highest points, a tourist destination.
For more than 25 years, Hotel Himmelbjerget, which operates Bjergkiosken, and the Komiteen til bevarelse af Mindesmærker på Himmelbjerget, which operates Ugleboden, maintained a market-sharing agreement, amounting to a cartel. Under this agreement, Bjergkiosken had the exclusive right to sell food and beverages, while Ugleboden sold only souvenirs. This agreement, in place from 1997 until early 2023, effectively eliminated competition between the two businesses and restricted consumer choice, constituting a clear violation of competition.
The Authority’s investigation resulted in two outcomes. The undertaking behind Bjergkiosken admitted to the infringement and accepted an administrative fine of 250,000 DKK. By contrast, the undertaking behind Ugleboden received full immunity under the leniency programme for being the first to disclose the cartel and for fully cooperating with the investigation.
Background and Facts
The case centered on two entities: Hotel Himmelbjerget v/H Jørgensen og B Jørgensen, which operates the ‘Bjergkiosken’, and the Komiteen til bevarelse af Mindesmærker på Himmelbjerget, responsible for ‘Ugleboden’.
The issue arose from a market-sharing agreement that persisted for over 25 years, from 1997 until early 2023. Under this agreement, the two businesses divided the market between themselves: Bjergkiosken, owned by Hotel Himmelbjerget, had the exclusive right to sell food and beverages, while Ugleboden, managed by the Komiteen, had the exclusive right to sell souvenirs. This agreement effectively eliminated competition between the two kiosks, restricting consumer choice and maintaining an artificial segmentation of the market. Such conduct is prohibited under Section 6(1) of the Competition Act of Denmark, which bans agreements that restrict competition by object or effect.
The cartel came to light when the Ugleboden applied for leniency in December 2024, voluntarily disclosing the existence of the agreement to the Danish Competition and Consumer Authority. This authority had no prior knowledge of the agreement. The leniency application triggered an investigation, which confirmed that the agreement constituted an infringement of competition law.
Findings of the Authority
The authority concluded that the agreement between Bjergkiosken and Ugleboden violated Section 6(1) of the Competition Act of Denmark, which is the national mirror of Article 101(1) TFEU. This prohibit agreements between undertakings that have as their object or effect the prevention, restriction, or distortion of competition. Market-sharing agreements are considered hardcore restrictions which are unlawful by their very nature, regardless of actual market impact.
The Authority emphasised that the agreement was deliberate and long-standing, lasting for more than two decades. This duration significantly aggravated the seriousness of the infringement.
Thus, the enforcement outcome was twofold: Bjergkiosken received a fine proposal of 250,000 DKK (€33,500, approx.) for its role in the infringement. Hotel Himmelbjerget admitted to the infringement early in the process, which allowed the case to be resolved through an administrative fine. This was based on several factors: the gravity of the infringement (as market sharing is among the most severe breaches of competition law); the duration of the agreement (which spanned over 25 years); and the undertaking’s size and turnover, ensuring the fine was proportionate and within the statutory maximum under Section 23b of the Competition Act of Denmark. The Authority also considered mitigating factors, such as the company’s early admission and willingness to settle, which likely prevented a higher fine.
Ugleboden was granted full immunity from fines under the leniency program, as it was the first to report the cartel and cooperated fully with the investigation. It also maintaini continuous cooperation throughout the investigation by the Authority.
Decisions of the Authority
The two decisions of the Danish Competition and Consumer Authority in respect of the two undertakings in this case can be read here.