In January last year, Frumherji hf. acquired all the shares of Aðalskoðunar hf. This constitutes a merger of the two companies for the purposes of competition law. The companies are the only ones operating in the market for the inspection of registered vehicles and in the market for the inspection of the facilities, hygiene and internal controls of fishing licence holders in the fisheries sector. Together, the companies therefore hold a monopoly position in the relevant markets. The Competition Authority is of the opinion that the merger of the companies hinders effective competition in these markets and thus runs counter to the objective of the Competition Act. For this reason, the Competition Authority has prohibited the merger of the companies, citing its authority under section 17 of the Competition Act.
