Following an investigation by the Competition Authority, Síminn hf., Landsvirkjun and Fjarski ehf., a subsidiary of Landsvirkjun, have reached a settlement with the Competition Authority and admitted to having engaged in illegal collusion in connection with Síminn's acquisition of a stake in Fjarska, and the acquisition of six fibre-optic cables between the Hrauneyjarfoss power station and Akureyri.
The background to the matter is that in February 2005, Síminn bought a quarter share in Fjarska, which operates, among other things, in the telecommunications market, and also purchased from Fjarska six of the twelve fibre-optic cables between the Hrauneyjarfoss Power Station and Akureyri. After this collaboration was reported in the news, the competition authorities initiated an investigation of their own accord, which led to the parties being sent a statement of objections from the Competition Authority. It stated the authority's preliminary assessment that the purpose of the companies' agreements was to distort competition and divide up the telecommunications market, and that by doing so, the parties had contravened Article 10 of the Competition Act.
Following the publication of the Competition Authority's statement of objections, the parties each separately sought settlement negotiations with the Competition Authority, which led to the above-mentioned decision. The settlement involves the parties to the case admitting to breaching Article 10 of the Competition Act and agreeing to annul the contracts that were the basis of the infringement. Furthermore, Síminn agreed to pay a government fine of 55 million, and Landsvirkjun 25 million. The fact that Síminn was the leading party in the collusion explains the difference in the amount of the fines.
Further information on the matter can be found in the decision of the Competition Authority. No. 6/2007.
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