Danish Maritime and Commercial High Court: Deutz and Diesel Motor Nordic infringed competition legislation by preventing the supply of spare parts for the IC3-trains
On 11 January 2021, the Maritime and Commercial High Court has confirmed that Deutz abused its dominant position by refusing to supply engine spare parts to the IC3-trains and that Deutz and Diesel Motor Nordic jointly made an anti-competitive agreement to prevent the import of the spare parts. The Competition Council first adopted a decision in the case in 2013.
Deutz prevented the supply of spare parts for the IC3-trains owned by the Danish State Railways, DSB, by preventing the supply to DSB’s subcontractors outside Deutz’ exclusive dealership network. The spare parts were to be used in the renovation of 404 Deutz-engines. Deutz refused to supply spare parts to the IC3-trains and prevented parallel imports of spare parts in an agreement with its distributor in Denmark, Diesel Motor Nordic.
The case began in 2010 were DSB attempted to reach an agreement regarding renovation of the engines with Deutz and Diesel Motor Nordic. DSB could not accept the price and conditions offered and entered instead into an agreement with a consortium of four smaller companies.
In order to restore the IC3-trains the consortium needed to buy spare parts. However, through refusal to supply and prevention of parallel trade Deutz and Diesel Motor Nordic tried to block the delivery of spare parts, which can only be sourced through Deutz. The purpose hereof was to prevent the consortium from fulfilling the agreement with DSB and to push DSB to buy at a higher price from Deutz’ own distributor in Denmark, Diesel Motor Nordic.
The case has been reported to the Danish State Prosecutor for Serious Economic and International Crime.