A large number of private Danish companies offer memberships to fitness centres and dance studios on market terms. However, non-profit clubs and societies offer similar services while receiving public subsidies.
This study investigates whether or not those subsidies lead to distortion of competition.
The results indicate that distortion on a national level is unlikely due to the limited size of the total subsidies to fitness clubs and dance studios. However, for fitness clubs the results also indicate a risk of local distortion of competition.
This finding is based on following evidence:
For dance studios, the results indicate only a moderate risk of local distortion of competition. This is due to evidence largely similar to that for fitness clubs with one notable exception, which is a lesser degree of overlap between users of commercial and subsidized dance studios.
The study was commissioned by the Danish Competition and Consumer Authority.Download