As is well known, the Competition Authority has to
the acquisition by the investment fund Ardian of Míla, with the seller being Síminn.
The transaction is subject to the merger rules of competition law and the investigation is subject to
statutory deadlines.
The investigation has been ongoing without interruption since 8th February.,
when a completed merger notification was received by the Competition Authority. During the investigation
has the supervisory authority analysed the data and information that accompanied the merger notification,
to obtain further information and perspectives from Ardian, Síman and Míla, including
extensive internal evidence regarding the preparation and basis of the transaction.
The supervisory authority has also obtained information and viewpoints.
other players in the market, that is, companies in retail, wholesale and
infrastructure operations in the telecommunications market. Most of these parties have put forward
Well-founded concerns about the competitive conditions in the telecommunications market following the transaction.
Furthermore, the Communications Authority has set out detailed views on possible harmful
the impact of the trade and provided the supervisory authority with information that is important for
investigation of the case. Has the Competition Authority thereby fulfilled its statutory duty
his role.
The authority has then utilised cooperation between competition authorities.
in the European Economic Area, the investigation of the case and the substance of the case
with the guidance available in EU/EEA law. The supervision has also
Informal enquiries were made to a workshop of regulators that have been involved in the acquisition of state infrastructure.
However, it should be noted that the Competition Authority cannot see that there are examples of
a parallel or comparable acquisition of telecommunications infrastructure as that which is at issue here
as a basis, where the subject of the sale is an operating company which includes active as well
With inactive infrastructure and wholesale operations, the market share of the sold is strong.
in an equally broad field, the seller is the largest retailer in the relevant market and
market-dominating in individual sub-markets, and the seller and the subject matter are bound
We also maintain equally close business ties and long-term partnerships after the purchase.
Based on the above-mentioned research and in accordance with
In accordance with procedural rules, the Competition Authority has published to the parties to the merger the so-called
an objection document, which sets out a detailed initial assessment of the competitive effects of the sale.
The preliminary assessment indicates that wear on
that the ownership links between Síminn and Míla are positive from a competitive point of view. On the other hand
It is suggested that the merging parties overlook the fact that
The ownership relationship between Síminn and Míla has, since 2013, been subject to detailed
conditions intended to counteract the harmful effects of the ownership ties.
The submission emphasises the need to analyse
Competitive impact of the proposed wholesale agreement between Síminn and Míla.
He announces that Síminn has acquired all the main wholesale outlets.
telecommunications service for 20+5 years and includes exclusive purchasing rights for Míla
with respect to Síminn. Will the contract not be understood other than as meaning that Síminn
would be locked into business with Míla for the long term. At the same time, competitors
Míla largely excluded from business with the largest supplier
telecommunications service in the country. Furthermore, the supervisory authority considers that the provisions of the agreement
that linking wholesale prices to the Consumer Price Index entails a risk that
The company, and its customers, will benefit from price reductions due to
continued technological development and competitive pressure.
The reply document then discusses the close cooperation between Síminn and
Míla, pursuant to the existing wholesale agreement, and regretting the likelihood that
that the proposed collaboration prevents competition. It is also argued that
that the merger could lead to increased coordination between competitors in their operations
data transmission systems and thus increase the incentive for coordinated action. In data
The information on the matter concerning what is called an infrastructure alliance can be found. Backbone
Alliance) which in its worst form can have the effect that all infrastructure competition
to lie down.
Furthermore, it is inferred that a dominant market position
Míla is strengthening its position in the market for specialised data transmission services and that Míla will to
The unchanged have the opportunity to limit the access of customers and competitors to
Lower sales levels to key suppliers and customers.
If nothing changes, there is a risk that competitors in
infrastructure operations and wholesale will be significantly reduced. It is given that competition in this
the sector has provided consumers and businesses with access to powerful infrastructure and lying
which has enabled new telecommunications companies to enter the market.
In a letter to the parties regarding market testing, which
is accessible here, A more detailed summary of the initial assessment can be accessed.
The Competition Authority and a request for comments on the proposals submitted
changes and conditions regarding the purchase.
Ardian and Síminn responded to the above objection document.
by submitting detailed views to the Competition Authority, separately, but
both dated the 15th of July last. In the views of both parties, there is
Objected to the key points in the Competition Authority's preliminary assessment and argued against them.
that the Competition Authority should make changes to its preliminary assessment in its final decision
its assessment of the effects of the merger.
Ardian's views, excluding confidential information, are available here
and the perspective of Síminn here.
In parallel with making comments on the initial assessment
The Competition Authority sets out in its letter suggestions to changes in
the subject matter of the aforementioned wholesale agreement. Thus, the term of the agreement will be shortened
but at the same time, certain changes were made, particularly to the provisions on the cooperation of Síminn
and Míla and provisions on pricing. Then, proposals are put forward for the conditions
which are to ensure access to Míla's systems and services, and the unbundling of service elements,
Information to customers regarding changes to Míla's systems or services and
monitoring and follow-up of conditions. The above-mentioned proposals from Ardian are
elaborated in Chapter 8 of the aforementioned paper by the society (pp. 29–33).
When merger parties submit proposals for changes or
Conditions are generally imposed in light of the competition authorities' preliminary assessment.
a so-called market test of the relevant proposals. In a market test
consists in, among other things, presenting the relevant proposals to the stakeholders and requesting
their point of view.
With reference to this, the Competition Authority has today sent
key stakeholders the aforementioned letter, where the preliminary assessment is outlined
The Competition Authority and the requested views on the parties' submitted views
and Ardian's proposals in connection with the conciliation talks.
As these transactions concern a broad group of customers
in the telecommunications market, including consumers, as well as governments and stakeholders
in various areas, the Competition Authority also considers it important to give everyone
an opportunity to present their views. For the purposes of the investigation, it is requested
after views have been submitted by the end of the day on 28th July.
This short deadline is due to the Competition Authority
It is to be noted that, according to the current deadlines, a decision on the matter must be made by the 18th.
this coming August.
It should be emphasised that what is set out above is a preliminary assessment,
compared with and letters to the parties, may undergo significant changes in light of
the expressed views of the contracting parties and views that may be received in
ongoing market testing, if there are grounds and information for it. Then has
Ardian, as previously stated, requested negotiations for a settlement in the matter and
The Competition Authority agrees to such discussions.
The outcome of the matter is therefore determined, on the one hand, by where
The Competition Authority's final assessment of the competitive effects of the sale of Míla
become, based on existing agreements, and on the other hand, from the will of the parties
the transaction to make changes to existing contracts or to set
Conditions on the transaction aimed at securing the interests of consumers and businesses
on competition in retail, wholesale and infrastructure services in the telecommunications market.
Attached documents:
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