In a decision of 27 March 2006 No. 9/2006 The Competition Authority concluded that the Ground Handling Service at Keflavik Airport (IGS), a subsidiary of FL Group (now Icelandair Group), had abused its dominant market position in the handling of passenger aircraft. The company breached Article 11 of the Competition Act 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. In July 2006, the Competition Appeals Board confirmed the Competition Authority's finding that IGS had abused its dominant market position, but decided that the fine should be 60 million kr.
IGS then brought a case before the Reykjavík District Court, demanding that the appeal board's ruling be overturned or that the administrative fine be cancelled or significantly reduced. In its judgment today, the District Court rejected these claims by IGS. The court found that IGS had breached competition law and that the imposed fine was in line with the severity of the company's offences.
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