Forbruger-Kontakt awarded DKK75m in damages in suit against Post Danmark
The High Court of Eastern Denmark has awarded private distribution company Forbruger-Kontakt DKK75m in damages from the Danish Post Danmark for Post Danmark’s abuse of its dominant position in the market for distribution of unaddressed direct mail.
The High Court of Eastern Denmark has awarded private distribution company Forbruger-Kontakt DKK75m ($14.2m) in damages from the Danish Post Danmark for Post Danmark’s abuse of its dominant position in the market for distribution of unaddressed direct mail.
In the judgment, Post Danmark has been found to have abused its dominant position in 2003 by offering three of Forbruger-Kontakt’s customers – COOP, SuperBest and Spar – particularly low and non-cost-motivated prices, thereby winning the three customers from 2004 onwards.
The case marks a milestone in the case law of damages concerning breach of the Danish Competition Act and incited the Court to take a stand on a variety of issues, such as the basis of liability, fulfilment of other conditions for entitlement to damages and, not least, calculation of losses.
In addition to damages in the amount of DKK75m ($14.2m), Forbruger-Kontakt was awarded DKK4m ($0.76m) in costs and interest on the awarded amount.
In 2004, prior to the action for damages, the Danish Competition Council established, on the basis of complaints filed by Forbruger-Kontakt in 2003, the Danish Competition Appeals Tribunal in 2005, and the High Court of Eastern Denmark in 2007, that Post Danmark’s conduct represented a case of exclusionary abuse. In its judgment, the High Court of Eastern Denmark has taken into account that Post Danmark has held and abused a dominant position by engaging in exclusionary conduct.
