Denmark Legal Update Q1 2019
Kromann Reumert provides you with insight into the latest legal news in Denmark across practice areas and industries. In this edition we keep you updated on some of the most relevant news in Q1 2019.
CONSUMER LENDING BUSINESSES WILL BECOME SUBJECT TO STRICTER REGULATION IN DENMARK
As from 1 July 2019, consumer lending businesses offering consumer loans in Denmark must obtain a licence from the Danish Financial Supervisory Authority if the newly introduced bill on Consumer Loan Businesses is adopted in its current form. Further, the bill will most likely have both administrative and financial consequences for businesses that fall within the scope of the bill.
FRAMEWORK AGREED FOR THE CHANGES TO THE BIOGAS SUBSIDY SCHEME
On 8 February 2019, the parties to the energy agreement of 29 June 2018 agreed on the framework for the cessation of the current biogas subsidies for new plants in 2020 and the cap on production subsidies for existing plants.
STATE AID BENEFICIARIES MUST ASSESS THE LAWFULNESS OF THE AID
The European Court of Justice has established that Member States must recover unlawful aid on their own initiative. It has further been established that the granting of state aid by a national authority does not create a legitimate expectation on the part of the recipient that the aid is lawful. State aid beneficiaries must therefore assess the lawfulness of the aid themselves.
DENMARK RATIFIES AGREEMENT ON COOPERATION IN COMPETITION CASES IN THE NORDIC COUNTRIES
Denmark has acceded to a cooperation agreement between Denmark, Finland, Iceland, Norway and Sweden intended to ensure effective enforcement of competition law in each of the countries. Read this news article to get updated on the implications of the agreement.
DANISH SUPREME COURT RULES AGAINST MINISTRY OF TAXATION IN LANDMARK TRANSFER PRICING CASE
Kromann Reumert's tax team successfully defended Microsoft in the first substantial transfer pricing case to reach the Danish Supreme Court. The Ministry of Taxation's claims were based on substantive as well as procedural allegations, raising legal questions of principle and of general importance for Danish transfer pricing matters.
SHAREHOLDER RIGHTS DIRECTIVE II IMPLEMENTED IN DENMARK
The Shareholder Rights Directive II ("SRD II"), which imposes new requirements on listed companies, intermediaries (depository banks, central securities depositories, etc.), asset managers and institutional investors, has been implemented in Denmark.
REQUIREMENTS FOR TRANSPARENCY TIGHTEN UNDER THE DANISH PUBLIC PROCUREMENT ACT
On 26 February 2019, the Danish Parliament adopted an amendment to the Danish Public Procurement Act that is intended to increase transparency when evaluating EU tender submissions in Denmark. First, the amendment includes a tightening of the requirements for the description of the evaluation method in the contract documents. Second, the amendment introduces a so-called two-envelope system that will be applied when evaluating large construction projects.