The Competition Authority operates in accordance with the Competition Act. No. 44/2005

The Competition Authority has various roles to play under the following laws:

The activities of the government are governed by the Freedom of Information Act and the Administrative Procedure Act:

  • Rules No. 880/2005 on the proceedings of the Competition Authority
  • Rules No. 924/2007 on changes to the procedural rules of the Competition Authority

  • Rules No. 380/2023 on the rules of procedure of the board of the Competition Authority.

  • Rules No. 490/2013 on the market research of the Competition Authority

  • Rules No. 890/2005 on the waiver or reduction of fines in consultation cases

  • Instructions on the application of Article 15 of the Competition Act, an exception to the prohibition on undertakings' collusion

Agreements and decisions which contravene paragraph 1 of Article 53 of the EEA Agreement are automatically void, pursuant to paragraph 2 of the same article. However, under paragraph 3 of Article 53, so-called group exemptions may be granted; these are general exemptions from the prohibition in paragraph 1. Article 53(3). The exemptions are granted on the basis of specific regulations, and agreements that meet the conditions of the relevant regulation are granted an exemption. This allows the companies to assess for themselves whether their agreements breach Article 53(1) or meet the conditions of Article 53(3) and are therefore exempt. Links to the rules on group exemptions can be found below in Icelandic. (links open in a new window).

Regulation No. 1272/2012 on the implementation of the Commission Regulation (EU) No. 906/2009 on a group exemption for certain categories of agreements, decisions and concerted practices between liner shipping associations. See also regulation No. 203/2015 on the implementation of the Commission Regulation (EU) No. 697/2014 Amendment to Regulation No 906/2009 as regards its period of application.

Regulation No. 927/2010 on the implementation of the Commission Regulation (EU)No. 330/2010 on the block exemption for categories of vertical agreements and concerted practices.

Regulation No. 926/2010 on the implementation of the Commission Regulation (EU) No. 267/2010 on the block exemption for certain categories of contracts, decisions and concerted practices in the insurance sector.

Regulation No 1273/2012 on the implementation of the Commission Regulation (EU) No. 461/2010 on the block exemption for categories of vertical agreements and concerted practices in the field of motor vehicles.

Regulation No 1274/2012 on the implementation of the Commission Regulation (EU) No. 1217/2010 on group exemptions for certain categories of research and development agreements.

Regulation No. 1275/2012 on the implementation of the Commission Regulation (EU) No. 1218/2010 on group exemptions for certain categories of specialisation agreements.

Regulation No 621/2016 on the implementation of the Commission Regulation (EU) No. 316/2014 on the group exemption for categories of technology transfer agreements.

In addition, the EFTA Surveillance Authority has issued guidelines and notices concerning various aspects of the application of competition rules, which are useful for reference. These guidelines and notices are substantially similar to the legal instruments issued by the European Commission. Links to these guidelines and notices can be found here.

  • Procedural rules on the appointment and duties of monitors appointed on the basis of settlements in cases before the Competition Authority

  • New agreement Signed in 2014, a cooperation agreement between the Nordic competition authorities on competition matters.
  • Agreement on the amendment of and Sweden's accession to the Agreement between Denmark, Iceland and Norway on cooperation in competition matters
  • Agreement between Denmark, Iceland and Norway on cooperation in competition matters
  • Guide rules About the relationship between suppliers and supermarkets
  • Guiding principles No. 197/2022 The Telecommunications Authority and the Competition Authority on the handling and resolution of telecommunications matters
  • Guiding principles No. 198/2022 Agreement between the Building Authority and the Competition Authority on the handling and resolution of postal matters

The provisions on competition law are a significant part of the European Economic Area Agreement (the EEA Agreement), and are to be found in the main body of the Agreement, its protocols and annexes. All European Union countries, as well as Norway, Iceland and Liechtenstein, are parties to the Agreement, which was enacted into domestic law here by law No. 2/1993. The objective of the Agreement's competition rules is to create a unified and robust competitive environment in the EEA area. The main substantive provisions of the Agreement on competition matters are found in Article 53, which prohibits undertakings' concerted practices, Article 54, which prohibits the abuse of a dominant position in the market, and Article 57, which deals with mergers of undertakings.

The competition rules of the EEA Agreement are only applied when the agreements and decisions of undertakings in the EEA area can have a direct or indirect effect on trade within the area. The competition rules of the EEA Agreement apply alongside the Icelandic Competition Act. No. 44/2005. The competition rules of the Agreement are applied by the EFTA Surveillance Authority (ESA), the Commission of the European Communities, and the Competition Authority. The division of cases between the ESA and the Commission is based on Articles 56 and 57 of the EEA Agreement. The Competition Authority is required, on the basis of competition law that the application of Articles 53 and 54 of the Agreement means that agreements between undertakings affect the territory, see in particular Chapter VII of the Competition Act. Further information on the EEA Agreement's competition rules can be found here. Complaints and suggestions regarding breaches of the EEA Agreement's competition rules can be directed to European Space Agency or to the Competition Authority.

Group exemptions

Contracts and decisions which contravene paragraph 1 of Article 53 of the EEA Agreement are automatically void, see paragraph 2 of the said article. However, under Article 53(3), so-called group exemptions may be granted; these are general exemptions from the prohibition of Article 1. clause of Article 53. The exemptions are granted on the basis of specific regulations, and agreements that meet the conditions of the relevant regulation are granted an exemption. With the introduction of the exemptions, companies can assess for themselves whether their agreements breach Article 53(1) or meet the conditions of Article 53(3) and are therefore exempt. Links to these block exemption regulations can be found here (links open in a new window).

  • Regulations on the implementation of EC regulations on group exemptions for horizontal cooperation agreements
  • Regulations on the implementation of EC regulations concerning horizontal agreements in the transport sector
  • Regulations on the implementation of EC regulations on block exemptions for insurance contracts
  • Regulations on the implementation of EC regulations on group exemptions for vertical agreements
  • Other regulations

Group exemptions which are no longer in force are to be found in Regulations.

The Minor Rule

The de minimis rule applies to contracts and other arrangements which are considered so minor that they are not considered to fall under paragraph 1 (para. 1). Article 53. Although the agreements in question are strictly prohibited under Article 53(1), it is considered that the market share of the relevant competitors below 10% is so small or insignificant that the agreement does not fall within the scope of Article 53. However, where the companies are not competitors, their combined market share must not exceed 15% for the de minimis rule to apply.

The EFTA Surveillance Authority has issued a notice on minor agreements.

ESA Guidelines