Revision of the Investment Screening Act has entered into force

Published 7 July 2023

PrintCategory: Updates

On 1 July 2023, a revision of the Investment Screening Act (the “Act”) entered into force.

The revision revolves around two areas: public contracts and administrative procedures.
On 3 May 2023 – after a public consultation – the government submitted a revised proposal, which has now entered into force.

Public contracts
Before the revision, public contracts were only subject to screening if they fell within the Act’s definitions of investments or special economic agreements. To further protect Danish infrastructure and national security, it was considered that the contracting parties – regardless of domicile and nationality – should apply for permission before entering public contracts within the energy sector as a whole.

After pushback in the public consultation, the proposal was changed to only cover parties to contracts concerning the establishment, ownership, and operation of the energy island in the North Sea.
This means that all parties – regardless of domicile and nationality – contracting to establish, own or operate the energy island will need a prior permission before entering into the relevant contract.
This requirement does not only cover the contracting party, but also any subcontractors hired by the contractor. Thus, the Danish Business Authority can require a list of the subcontractors that are expected to be hired. Where the subcontractors will not be identified until later, the Danish Business Authority can condition the permission upon the subcontractors also be given permission.

Administrative procedures
The review by the Danish Business Authority shall now be divided into two stages. The review for uncomplicated matters shall be reduced to 45 working days (as opposed to previously 60 days) from receipt of a complete application. In more complicated matters, a second stage may be initiated, which further extends the deadline by 125 days. The stage two review will be based on a more comprehensive application form.
As before, if the Danish Business Authority exceeds the deadlines, it will have no effect on the applicant’s legal position and will not result in automatic permission or similar.

Read the amendment act here.

Tags:  Danish RegulationGovernance


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