The Competition Appeals Tribunal confirms the decision of the Competition Authority No. 9/2006, where the Air Services at Keflavik Airport (IGS) was fined for abusing its dominant market position.
With its ruling, No. 3/2006, dated 5 July 2006, the Competition Appeals Board upheld the Competition Authority's decision that the Airport Services at Keflavik Airport (IGS) had violated Article 11 of the Competition Act, on the abuse of a dominant position. The Appeal Board decided that IGS should pay a fine of kr. 60,000,000.
In the appealed decision, the Competition Authority concluded that the Ground Handling Service at Keflavik Airport (IGS), a subsidiary of FL Group, had abused its dominant market position in the handling of passenger aircraft. The company breached competition law when it entered into 10 exclusive purchasing agreements with airlines that land at Keflavik Airport and by making a competition-restrictive offer to the airline LTU. The Competition Authority ordered the company to pay a statutory fine of 80 million krónur to the state treasury.
As previously stated, the Competition Appeals Board upheld the decision of the Competition Authority, but imposed an administrative fine of kr. 60,000,000.
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