Danish Competition Council: Teller abused its dominant position

9.13.2018

In the opinion of the Danish Competition Council, payment card service provider Teller has been abusing its dominant position. The reason was that in many of its main customer contracts, Teller had been granting the customers discounts and terms that could protect its position in the market against competitors.
By assistant attorney Emil Petri

In the period from 2012 to 2016, Teller had entered into contracts with some of its main customers, granting the customers considerable discounts if they, in turn, would use Teller to supply all or a considerable part of their demands for international payment card services. In the relevant period, Teller was a subsidiary of Nets and the largest provider of international payment card services in Denmark.

The Danish Competition Council has now concluded that Teller's conduct constituted abuse of its dominant position. In the opinion of the Competition Council, the discounts and the exclusivity clauses had the effect of creating loyalty, which could prevent competitors from attracting the relevant customers.

Since, in the opinion of the Competition Council, Teller had not been able to provide documentation justifying the discounts and the exclusivity clauses, the Council ordered Teller to cease the illegal conduct. In addition, the Council decided to submit the case to the State Prosecutor for Serious Economic and International Crime for prosecution.

Read the Danish Competition and Consumer Authority's press release.