In June 2007, the Competition Appeals Tribunal confirmed the decision of the Competition Authority. No. 11/2007 that by the promotion and sale of flight tickets, so-called 'Netsmellum' amounting to 16,900 kr., which were available to customers of Icelandair ehf., to customers in 2004 on the route between Keflavik and Copenhagen on the one hand, and on the route between Keflavik and London on the other, the company had abused its dominant market position and breached competition law. Icelandair was ordered to pay an administrative fine of 130 million króna to the state treasury. Icelandair appealed the appeal board's decision to the courts.
In its judgment today, the Reykjavík District Court has confirmed the conclusion of the Appeals Board that Icelandair held a dominant position in the market and abused it, thereby breaching Article 11 of the Competition Act. However, the District Court did not consider the infringements to be as serious as those found by the Competition Appeals Board and therefore quashed the board's decision to impose a fine.
The Competition Authority is considering whether to appeal this judgment of the district court to the Supreme Court.
See review District Court.
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