European dairy major Arla Foods stands accused of abusing its market dominance.

Competition authorities have submitted evidence to the country’s financial crimes unit which is reported to show that Arla has unfairly exploited its leading position in the country’s dairy market.

Antitrust authorities carried out a raid after receiving a complaint from a small dairy producer, Hirtshals Andelsmejeri. The smaller company had lost a contract to supply the Dansk Supermarket group to Arla, and had alleged that the bigger company was offering business terms below market prices.

Arla Foods has a market share of at least 85% for most dairy products in Denmark. It was created by the 1999 merger of Danish cooperative MD Foods and Swedish competitor Arla.