A large proportion of Icelandic executives believe they have witnessed competition law breaches – a survey of attitudes by the Competition Authority.

The Competition Authority has published Report No. 3/2020 , Knowledge and attitudes of managers in Icelandic companies towards competition policy. The report presents the results of a survey on the attitudes of company managers towards competition policy. The survey was conducted by MMR at the end of 2019 and the beginning of 2020 among 8,000 Icelandic companies of all sizes and types. Nearly 2,000 companies responded to the survey. In designing the survey, the Competition Authority took into account similar surveys conducted in neighbouring countries, including Norway, the United Kingdom and the Netherlands.

The survey was conducted primarily to answer the following points:

1. Managers' knowledge of the core principles of competition law, i.e. Icelandic law and the rules of the EEA Agreement.
2. Managers' perceptions of the competitive conditions in competitive markets in this country.
3. The extent to which competition law and its enforcement prevent anti-competitive conduct by companies (deterrent effect).
4. The views of executives on the application of competition rules, how competition could be strengthened in this country, and the impact of competition law in other respects.

The main findings of the survey are as follows:

1. A large proportion of Icelandic business leaders believe that competition law breaches are taking place in their market.
2. Competition law and its enforcement reduce anti-competitive behaviour.
3. The deterrent effect of the Competition Authority's fines and the reduction and remission rules of the Competition Act must be strengthened.
4. Managers' knowledge of the core provisions of competition law and the EEA Agreement must be enhanced.
5. The enforcement of competition law and the activities of the Competition Authority work to counteract anti-competitive conduct, but there are various opportunities to further strengthen competition.

In light of the main findings of the report, the Competition Authority believes that the results of the survey provide grounds for considering at least the following points:

• The fact that a large proportion of executives at Icelandic companies believe they are witnessing breaches of competition law and anti-competitive behaviour in their market must be taken seriously. The Competition Authority will take this into account when resolving and prioritising cases.
• It is important to increase the importance of the leniency and immunity rules of competition law. The Competition Authority is currently working on a review of the rules on this and their introduction.
• Consideration must be given to the deterrent effect of the Competition Authority's administrative sanctions. It is important to take this deterrent effect into account when enforcing competition law.
• The visibility of European competition rules and the ESA's jurisdiction in this area must be increased in this country.
• The government needs to increasingly take action to support effective competition. The measures that could be considered are:

1. To assess the competitive impact of laws and regulations (competitive assessment) and to remove obstacles in that area,
2. To make greater use of tendering for the purchase of goods and services,
3. To abolish the specific exemptions from competition law that certain companies and industries have.

• The knowledge of company managers must be enhanced, in part by making information on competition law even more accessible. The competition authority, providers of continuing professional development, and business associations need to address this.

Background information

The Competition Authority has recently conducted surveys among the public and businesses, with the aim of obtaining better information about the knowledge and attitudes of these parties towards competition matters. This information is used by the Competition Authority, other government bodies, consumer advocates and participants in business life for the formulation of priorities and policy in this area. Furthermore, these surveys are used to monitor the objectives set out in the financial plans for 2018 to 2020, which aim to promote greater awareness of sound business practices and reduce breaches of competition law. Furthermore, the financial plans include objectives concerning public attitudes towards business and market supervision.

The results of a survey on public attitudes to competition policy are presented in report Competition Authority No. 1/2019, Public attitudes to competition policy. The survey was carried out in the first half of 2019 and was based on a survey that the European Commission has commissioned three times in all member states of the European Union.

The survey now published by the Competition Authority, however, covers company managers and was conducted by MMR at the end of 2019 and the beginning of 2020. This was an online survey sent to the managers of just over 8,000 companies of all sizes and types, of which nearly 2,000 responded. In designing the survey, the Competition Authority took into account similar surveys conducted in neighbouring countries, including Norway, the United Kingdom and the Netherlands.