With the opinion of the Competition Authority
No. 2/2024 which is published today, the supervisory authority directs those recommendations to
The Minister of Health and the National Health Insurance of Iceland (NHI) to take action
to promote improved competition in outpatient imaging. This opinion
is published due to a complaint by Intuens Magnetic Resonance ehf. (Intuens) to
The Competition Authority about the company having been refused a contract for payment participation
at SÍ which hinders its entry into the imaging diagnostics market.
Specifically, the recommendations include
ensures that the health authorities promote increased competition by paying
the entry of new players into the market, but more active competition promotes this
that users receive a better service at the most favourable price, for the benefit of
the general public and the Treasury, which covers a significant part of the cost through
participation in payment by the IS.
Also, that immediately
to ensure that Intuens enjoys equality of treatment with established companies in the market for
an agreement on cost-sharing. The Competition Authority believes that the government has not
presented substantive reasons for rejecting an agreement with Intuens regarding
payment participation at the same time as older agreements have been extended with respect to
operating companies.
It is then directed to
to health authorities to tender for general diagnostic imaging services provided
outside hospitals or that the decision to procure such services has them clear
The aim is to strengthen competition in the market, but this involves, among other things, that new companies which
meet the substantive requirements and offer competitive prices and services accordingly
The easiest way to enter the market.
The Competition Authority believes that
It is highly significant that the market for imaging has been growing rapidly.
in recent years, however, without an increase in competitors. Three are now working there.
companies, two of which have a significantly high market share. At the same time,
Health authorities pointed out that the services of current companies are costly and some
which returned great dividends to its owners. In such circumstances, it should be
The authorities' aim is to pave the way for new competitors to enter.
the market and strengthen competition to achieve more favourable prices and better service.
Background information:
The Competition Authority discussed the market
for imaging in decision-making No. 35/2020 where a merger was under consideration
Medical Imaging Ltd. and Icelandic Imaging Ltd. The merger
was invalid, as the shareholding of the combined company would have been around 90-95% and only
one other competitor active. The result
involved that the merging parties were important and close competitors with very strong
position and that the merger would eliminate the competitive restraint to which the parties were subject
from one another. Did that apply whether it was a matter of competition in quality,
service, to attract qualified staff and last but not least competition in
To provide the Icelandic healthcare system with the best possible service at a cost-effective price.
The merger was therefore annulled.
The decision was confirmed by
Ruling of the Competition Appeals Tribunal in the case No. 3/2020 and later by judgement
of the Reykjavík District Court in a case No. E-4662/2021 . The district court's judgment was then
recently confirmed in the Landsréttur or on 3 May 2024 by judgment in a case No. 165/2023
with reference to the grounds, for the most part.
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