In 2022, Ardian's acquisition of Míla was subject to detailed conditions to protect competition in telecommunications. Míla later requested a review of the conditions. Following a thorough investigation, changes have now been made to them, particularly due to changed market conditions in the markets for local loops and data transport over them.
The investigation revealed indications that Míla had breached certain conditions. Míla has now admitted the breach and is paying a 200 million króna administrative fine for it.
Míla and the Competition Authority have signed a settlement regarding the aforementioned settlement of the case.
Original conditions
Ardian's acquisition of Míla from Síminn in 2022 constituted a merger likely to significantly distort competition. It was therefore deemed necessary to intervene, which under the law could involve either the annulment of the merger or the imposition of conditions. The Competition Authority, Ardian and Míla agreed that the merger's harmful effects could be counteracted by imposing binding conditions. A settlement regarding these conditions was finalised in the autumn of 2022. News from 15 September of the same year.
The conditions included, on the one hand, changes to the long-term wholesale agreement between Síminn and Míla, which, among other things, formed the basis for the valuation of Míla at the time of the acquisition. Thus, the obligations in the agreement between Síminn and Míla were significantly reduced; these obligations would otherwise have, to a large extent, prevented Míla's competitors from offering services to Síminn, who is the country's largest purchaser of infrastructure services. However, Míla committed to complying with certain conditions in its operations due to its dominant market position; these conditions prohibited anti-competitive bundling and the intertwining of service elements, and ensured equal access to Míla's systems, services and information.
Request for review – investigation into offences
In 2024, Míla requested a review of the conditions, i.e. that they be lifted or significantly narrowed due to changed market conditions. Upon examining the request, indications of breaches of certain conditions emerged, and at the same time, complaints from market participants against Míla were received.
In March 2025, Míla was presented with the Competition Authority's preliminary assessment regarding alleged breaches of the conditions. Subsequently, Míla requested settlement negotiations with the Competition Authority with the aim of concluding the Authority's investigation into Míla's infringements and a review of the existing conditions. Settlement negotiations began in September 2025.
Admission of guilt and fines
In a recent settlement with the Competition Authority, Míla has agreed that the frequency and extent of communication between Míla and Síminn from October 2023 to December 2024 was such as to limit Síminn's incentive to purchase services from Míla's competitors, beyond what the Simans' obligation to purchase, under the companies' agreement, stipulated. This constituted a breach of the applicable conditions.
As a result, Míla agrees to pay a government fine of 200 million króna. The terms of the new settlement are intended, among other things, to further ensure that competition can exist for those of Síminn's business that fall outside the scope of the wholesale agreement with Míla, and that Míla does not seek to persuade Síminn's customers (homes and businesses) are transferred to Míla's network from the networks of Míla's competitors.
Review of conditions in light of changed market conditions
The Competition Authority's investigation has revealed changes in Míla's position in the markets for access lines, i.e. access to copper and fibre-optic connections, and the market for data transmission over access lines (bitstream). It is clear that Míla still has a strong nationwide position in these markets and offers a wide range of services in other areas of telecommunications infrastructure. On the other hand, other competitors, particularly Ljósleiðarinn in its operating areas (including the capital region), have significantly strengthened their position in recent years and now have a considerably larger share of connections there than Míla.
For this reason, the Competition Authority has agreed that the conditions regarding access to systems, information provision, and the prohibition on bundling and tying will not apply except in those geographical areas where Míla has significant market power. This is in line with the assessment by the Communications Authority on the necessity of obligations under the Telecommunications Act. If this change is not made, there is a risk that the relevant provision of the settlement agreement will hinder competition, rather than protect and promote it.
In addition, amendments are being made to the existing conditions in order to clarify them further in light of experience in their implementation.
The Competition Authority's detailed reasons for this decision in the case will be published shortly.
The new agreement between the Competition Authority and Míla is available. here.
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