In new decisions, the Competition Authority has concluded that both Sena and Hagar have breached the competition law prohibition on implementing a merger before it has been authorised by the authority. A fine of 20 million króna has been imposed on Haga and a fine of 15 million króna on Sena for these breaches.
The Competition Act prohibits a merger from being implemented while the Competition Authority is reviewing it, unless a special authorisation is granted by the Competition Authority. This rule is intended to ensure that competition-impeding mergers can be adequately addressed. The Competition Act specifically provides for penalties to be imposed on companies that breach this rule. These are the first cases in which such penalties have been applied, but this rule was introduced into competition law in May 2008.
The case concerning Haga hf. concerns a merger which consisted of the company's acquisition of BT Verslanir in November 2008. This merger was carried out by Haga before it was notified to the Competition Authority in accordance with the law. Consequently, the merger was implemented before the Competition Authority had an opportunity to assess its effects on competition. This constituted a breach of the relevant provision of the Competition Act. After the Competition Authority published its preliminary assessment that the merger in question was anti-competitive, the acquisition was reversed and BT is no longer owned by Haga. This is addressed in the Competition Authority's decision of 15 May 2009 (No. 20/2009).
Senu's case relates to the company's acquisition of Skífan in October 2008. This merger was carried out by Senu before it was notified to the Competition Authority. Furthermore, it was implemented while the case was under investigation. This constituted a breach by Senu of the aforementioned provision of the Competition Act. In the decision of the Competition Authority of 2 April 2009 (case No. 12/2009) it was concluded that the merger of Sena and Skífan would harm competition. As another party had in the meantime acquired Sena, it was considered possible to authorise the merger on condition that measures are taken to protect competition.
See the decision for details No. 22/2009 and decision No. 23/2009.
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