A decision today concludes the investigation by the Competition Authority, which began with searches at the premises of Teymi, Og-fjarskipti and Tal on 7 January. The decision concludes that Teymi and Og-fjarskipti have breached Article 10 of the Competition Act and the conditions of the Competition Authority's decision. No. 36/2008 with the following measures in 2008:
According to the decision, Teymi will pay a 70 million króna administrative fine for the offences. Furthermore, it is stipulated that Teymi sells its shareholding in Tali within specified timeframes. While the sale is being managed, measures are stipulated to ensure the competitive independence of Tali vis-à-vis Og fjarskipti.
During the proceedings, representatives of Teymi approached the Competition Authority and requested settlement negotiations. Teymi and Og-fjarskipti entered into a settlement which forms the basis of the aforementioned decision. In assessing the amount of the fine, consideration is given, amongst other things, to the fact that the companies in question took the initiative to enter into settlement negotiations with the Competition Authority and have now unreservedly admitted their infringements of competition law. They have also agreed to comply with orders designed to enhance competition. This has significantly facilitated and shortened the investigation and proceedings of the competition authorities, which has a positive competitive effect. This willingness to cooperate is taken into account when assessing fines.
In early December 2008, representatives of Tal approached the Competition Authority and requested to provide information about the aforementioned infringements. In this connection, reference was made to the rules of the Competition Authority. No. 890/2005 of incidents leading to the cancellation of fines or decisions to reduce fines in cases concerning illegal collusion between companies. Tal was the first company in this case to provide information about the offences in question and has provided significant assistance in clarifying the case. For this reason, Tal was not fined in the case.
Background information:
On 13 June 2008, the Competition Authority made a decision in a case concerning the merger of the telecommunications companies Hive and Sko, which now operate under the Tals brand (decision No. 36/2008The merger was approved subject to conditions. These conditions were designed to ensure the competitive independence of Tal and to guarantee full and unfettered competition between, among others, Tal and Og Fjarskipta, which is owned by Teymi.
The Competition Authority carried out a raid on the premises of Teymir, Og and Tals on 7 January. On 26 January 2009, the authority made an interim decision, No. 1/2008, with the aim of ensuring Talk's competitive independence from Vodafone, pending the investigation. Provisions were made for changes to Talk's corporate governance, and certain provisions in the agreement between Talk and Vodafone were annulled. By decision No. 8/2009, from 27 February, measures were again proposed to ensure the competitive independence of Talk.
See the decision for details No. 27/2009.
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