The Competition Authority has recently been reviewing the purchase
Landsprents ehf. acquired a printing press and other assets from the bankruptcy estate of Torgs ehf., but at the end of August a notice was received
A tip-off to the Competition Authority about the bankruptcy estate of Torg, a former publisher
of the newspaper, had sold a printing press, related equipment and consumables to
National Printing. With the purchase, competition in newspaper printing would cease, according to
cases where the disappearance of that competition will be attributed to the transaction.
After an examination of the matter, the Competition Authority informed
Landsprent about its initial assessment in a letter last September to the effect that the purchase was
probably notifiable transactions, both on the basis of merger rules
competition law and merger rules of media law. Acquisition and takeover of a share
the operation of commercial enterprises may indeed include mergers within the meaning of
competition law and this also applies to acquired assets that are sold out of
company bankruptcies, particularly when it comes to significant assets being taken into administration
regard to the nature of the activities of a company as a manufacturing undertaking, which may be applied
on the turnover and income of a business. In the opinion of the Competition Authority, it was so in
in this case.
In November last year, the Competition Authority received a merger notification.
from Landprent where the supervisory authority was notified of the purchase, as well as an exemption to
to carry out the merger, but the supervisory authority did not agree to that request. Landsprent argued
that the conditions for a company in decline were met. In his investigation, gave
The Competition Authority also gave market participants the opportunity to comment on the merger.
who requested answers to questions concerning the liquidation process of the bankruptcy estate.
The authority's investigation revealed that Landsprent's bid was the only viable one.
and that in light of the merger file, supporting documents and the parties' submissions, it was the assessment
the authority's that the conditions of the exemption for a company in distress were
fulfilled. Because of this, the Competition Authority does not see grounds for it to
to take further action in connection with this merger, on no basis
merger provisions of competition law, nor provisions of media law. The Competition Authority will
publish a more detailed decision with a discussion of the case and the investigation later.
The Competition Authority received tips during its investigation of the case.
to the effect that the printing press had been dismantled, even destroyed, or at least
damages it in such a way that it would be impractical to repair it so that it
to get back in working order again. On inspection of the engine, it was revealed that it had been
remove extensive electrical switchboards and wiring, which according to one
the reviewer, this makes the printer probably unusable. In the opinion of
The Competition Authority has reason to examine whether this constitutes a breach of
an obligation to notify mergers and a prohibition on carrying out the merger during that period
It is under investigation (i.e. gun-jumping), but the Competition Authority has the authority.
to impose an administrative fine on those companies that breach the ban on
The merger is implemented.
Even if the Competition Authority considers that there are not
Grounds for intervention in the merger case concerning Landsprent's purchase of a printing press
It is clear from the assets of the Torg bankruptcy estate that a monopoly position will arise in the market for
Printing on print media here in the wake of the disappearance of the printing press.
marked. It is understood that Landsprent now has the country's only newspaper printing press.
Although other types of printing presses are available here, printing on simple
printing is considered a separate market, partly due to different methods and capacity
and higher printing costs. Then there is Árvakur, the owner of Landsprent and the publisher
of Morgunblaðið, and furthermore with a very strong position in the distribution of print media in
through its ownership of Póstdreifing ehf.
With Decision of the Competition Authority no. 2/2019 underwent
the parties to the case conditions which were intended to work against the barriers to competition which
otherwise would result from the merger in, for example, the market for the distribution of printed media. With us
Investigations into this matter have revealed indications concerning the aforementioned conditions,
regarding their failure to work as intended. The Competition Authority also received
Earlier in the year, a complaint was made that the terms of the settlement had not been honoured.
As previously reported, the Competition Authority has
no grounds for intervention in the aforementioned merger case due to
possible harmful effects of the merger, due to the fact that the viewpoints of companies on
The falling foot applies in the matter. However, further investigation may be required.
which aim to protect competition in the markets for printing, distribution and
the distribution of printed media on the basis of other provisions of competition law and media law,
cf. the aforementioned complaint and suggestions. This may be necessary in light of
that the publishing company of Morgunblaðið also controls printing and distribution
print media, and that service is a prerequisite for other competitors to be able to enter.
into the print publishing market and grown alongside a larger competitor.
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