By decision
The Competition Watchdog, published today, outlines a settlement which
the supervisory authority has reached an agreement with the Association of Financial Institutions (SFF). In the settlement
acknowledge SFF's breach of competition law and the directives applicable to the organisation
on the basis of a previous decision. SFF have agreed to pay a fine of 20 million kr.
and take action to prevent a recurrence of the offence.
The origins of this matter can be traced to a public
SFF's review of insurance companies' pricing following criticism
The Association of Icelandic Car Owners (FÍB) on motor insurance premiums for the autumn
2021. SFF's coverage led to FÍB sending a complaint to the Competition Authority.
14 September 2021 and requested that the supervision take into investigation whether
SFF's lobbying on behalf of its member associations would breach the provisions
competition law.
Provisions of Article 12 of the Competition Act
to ban business interest groups from distorting competition in business activities
its own. According to decision no. 17/2004 of the Competition Council, SFF is „Forbidden to go
with an official mandate regarding the pricing and services of its member associations.
This includes, amongst other things, discussion in the public domain about prices and price changes.
member associations and about their customers' demands for lower prices or improved
Terms of trade.“
After the investigation
The competition authority began when SFF turned to the authority and requested
talks to settle the matter amicably in accordance with competition law. An agreement was signed.
21 March 2022, in which SFF acknowledges having breached Article 12.
Competition Act and Decision no. 17/2004.
Did the SFF's offences consist of the organisation
to comment publicly on the pricing matters of member associations that operate in
insurance markets and defended their pricing policy in the wake of
FIB's criticism. SFF thus acted with an official pretext regarding pricing and
the services of its member companies which prevented the member companies from taking
each and every one to defend its pricing policy independently. Consisted of
this communication on the SFF platform and the organisation's published articles
Officially, dated 25 May 2021 and 8 September 2021.
In the opinion of the Competition Authority,
SFF excerpts of such a nature that they justify determining the penalties in this case on the basis of
maximum fine on the organisation itself (10% of the organisation's turnover), amounting to approximately 20
millions of kroner. However, the Competition Authority noted that SFF had requested
of their own accord, following conciliation talks, they readily admitted their wrongdoing and agreed
to take measures to prevent a recurrence of the offence. By this, they have
SSF has simplified and shortened the investigation and proceedings, which has had a positive impact.
competitive effects. Due to this and the nature of the case, it was decided not to apply them
provisions of competition law which allow for the imposition of higher fines on trade associations
of companies, but amounting to 10% of the total turnover of the respective organisations.
Paul Gunnar
Pálsson, Director-General of the Competition Authority:
„Participation of interest groups in
public discussion of the pricing of its member companies is particularly
dangerous. It is important that business lobby groups be careful in every respect.
directives of competition law and do not concern discussions on matters relating to prices
product or service of member companies. This is particularly urgent for those
the current circumstances.“
Decision of the Competition Authority No. 7/2022 is
accessible here and peace here.
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