Furniture wholesaler fined DKK 600,000 for Competition Law breach

15. December 2016

The city Court in Holstebro has fined the furniture wholesaler Canett Furniture A/S DKK 600,000 for infringing the Danish Competition Act’s prohibition on resale price maintenance.

Director General of the Competition and Consumer Authority Jakob Hald says:

"When a wholesaler dictates the price of its resellers, it eliminates the price competition between resellers. This harms consumers, who may ultimately have to pay more for their products."

The city Court in Holstebro fined Canett Furniture DKK 600,000 for infringing the Danish Competition Act’s prohibition on resale price maintenance. In the period from 11 February 2014 to October 2014, the company made it a requirement for a reseller to comply with the indicative prices as minimum prices for the company's furniture.

The company was also charged for preventing, through its guidelines for online sales, passive sales to Norway and Germany by requiring that internet access from these countries should be blocked by resellers. Canett Furniture has been cleared of this particular charge.

The case began in 2014 when a reseller contacted the Competition and Consumer Authority. The reseller stated that deliveries from Canett Furniture had stopped because the reseller was not adhering to indicative prices.

In 2015, the Competition and Consumer Authority referred the case to the Public Prosecutor for Serious Economic and International Crime.