Today, 11 July 2008, new rules of the Competition Authority No. 684/2008 on notification and procedure in merger cases come into force. The rules replace rules no. 881/2005 and were issued in order to align with amended provisions of the Competition Act concerning mergers, which came into force on 24 June. The main objective of the new rules of the Competition Authority and their annex is to be accessible and to provide guidance, and for the information required upon notification to be sufficient in light of the new substantive assessment now provided for by the law.
Act No. 94 of 2008 amended the provisions of the Competition Act No. 44 of 2005 concerning mergers, in light of the experience gained from the application of the previously applicable provisions on mergers. The merger rules of the Icelandic competition law were thus strengthened, while also being brought closer to the rules of EEA and EC law in this area. The main changes contained in the amendments are as follows:
- The merger will not be implemented while the Competition Authority is considering it, in accordance with section 3 of Article 17a of the Competition Act.
- The turnover thresholds for the purposes of determining whether mergers are reportable are increased, pursuant to Article 17a(1) of the Competition Act.
- It is now permissible to notify mergers on shorter notice, provided certain conditions are met, for example where the markets in which the effects of the merger might be felt are not related, pursuant to paragraph 6 of Article 17a of the Competition Act.
- Provisions on deadlines for making decisions in merger cases have been amended, pursuant to Article 17(d) of the Competition Act.
- The Competition Authority's substantive assessment of the competitive effects of mergers now does not only cover whether a dominant position has been created or strengthened, but also whether competition in the market is otherwise significantly impaired, see Article 17. Article 17(c) of the Competition Act.
- The Competition Authority may now reopen the case, if an appeal board or court has annulled the Authority's decision on procedural grounds, pursuant to Article 17(2) of the Competition Act.
- The definitions of mergers and acquisitions have been harmonised with European competition law, pursuant to Article 17 of the Competition Act.
Rules (PDF document – Opens in a new window)
