ABSTRACT

This chapter explains the background of the fact that Denmark is a small country with a population of about 4.7 million and that the economy is greatly influenced by an extensive foreign trade. In Denmark, the Trust Commission emphasised, among other things, that the practice of rpm must presumably have some detrimental effects because a system of fixed prices means an end to price competition in the retail trade. In Denmark, as in other countries, the dangers of loss-leader selling have been advanced by business firms as an argument against the imposition of a ban on rpm. In spite of this advocacy, rules on loss-leader practices were not included in the Monopolies Control Act of 1955. The final outcome of the discussions on loss-leader selling was that the Monopolies Control Authority decided that under the present law it could not introduce any general administrative ruling or give any general administrative directive.