A new decision by the Competition Authority states that the holding company Fengur hf. breached the competition law prohibition on implementing a merger before it has been authorised by the authority. Fengur and the Competition Authority reached a settlement in the case. Fengur is to pay an administrative fine of 10 million krónur for the breach.
Competition law prohibits a merger from being implemented before it has been notified to the Competition Authority and a decision has been made on whether the merger would prevent effective competition, 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.
The Competition Authority informed Feng of its assessment that it appeared the prohibition in the Competition Act against the implementation of the merger between Feng and the Iceland Travel Agency had been breached. Subsequently, Feng contacted the Authority and requested that a settlement be reached in the matter. Negotiations led to a settlement being made with the company, as the Competition Authority is permitted to do under the Competition Act. This provision is designed to shorten the investigation and proceedings of the competition authorities. The merger is discussed in the Competition Authority's decision of 20 November 2009. No. 36/2009.
See the decision for details No. 37/2009.
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