The Competition Authority has today placed a temporary ban on the Síminn offer called „3G netlykill and subscription for 0 kr. all summer“, while the Authority's investigation into a complaint from Nova regarding the offer is ongoing. It is likely that the offer breaches the competition law prohibition on the abuse of a dominant position. It is likely to harm competition in a sensitive, emerging market where Nova, the newest competitor in the telecommunications market, has been gaining some foothold.
The Competition Authority considers it necessary to ban the Síminn's offer at this stage because summer is the season when significant growth in the relevant market is most likely to be expected. Waiting to make a decision until the final outcome of the authority's investigation into Nova's complaint is available could therefore cause irreparable competitive harm to the market. A competitor could be driven out of the market as a result.
The above-mentioned offer from Síminn includes a service for potentially connecting computers to the Internet using a 3G (third-generation) dongle. Those who subscribe to the 3G data service from Síminn receive a network key (sometimes called a dongle) and a three-month subscription free of charge, but they commit to a six-month contract with the company. This service can be useful for users, particularly holidaymakers in holiday homes, campsites and elsewhere, in areas where ADSL service is not available but 3G service is offered.
See the interim decision for details. No. 2/2009.
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