Competition rules exist to ensure healthy competition, to the benefit of consumers and the economy. For businesses in Iceland, knowing these rules is essential, because breaches can have serious consequences. Here are the basics.
The ban on anti-competitive agreements
Businesses may not enter into agreements that restrict competition, for example on prices, sharing markets or limiting production. Such cooperation between competitors is prohibited and can lead to heavy fines.
The ban applies equally to formal contracts, informal understandings and exchanges of sensitive information through trade associations.
Abuse of a dominant position
Companies with a dominant position have special responsibilities. They may not abuse it to exclude competitors or harm consumers, for example through predatory pricing or unfair terms.
Being dominant is not illegal in itself; abusing that position is.
Mergers
When companies merge or acquire one another, competition can be affected. Mergers above set turnover thresholds must be notified to the Icelandic Competition Authority (Samkeppniseftirlitið), which can approve, set conditions or block them.
EEA rules and fines
As part of the EEA, Iceland also applies the EEA competition rules, enforced by the EFTA Surveillance Authority when trade between EEA countries is affected. Fines can reach 10% of a company's annual turnover.
Compliance
It makes sense for businesses to have a compliance programme that ensures their practices respect competition rules. It reduces the risk of breaches and fines. These matters fall under competition and consumer law.
When you need a lawyer
A competition lawyer can advise on what is allowed, assist with merger notifications and defend a company in cases before the Competition Authority.
Find a lawyer under competition and consumer law or browse lawyers in your region.