In an interim decision today, the Competition Authority has ruled that Íslandspóstur is obliged to negotiate with Póstmarkaðurinn on the receipt and distribution of mail in accordance with Íslandspóstur's tariff for large users and its terms and conditions. The terms and conditions of trade must be general so that companies in similar business dealings with Íslandspóstur enjoy the same terms.
In its interim decision, the Competition Authority concludes that it is likely that Íslandspóstur abused its dominant market position in its dealings with Póstmarkaðurinn, when the latter company sought to enter into a contract with Íslandspóstur. The decision finds that Íslandspóstur, through its terms and conditions with Póstmarkaðurinn, unlawfully discriminated between the parties. Furthermore, it is considered that the terms may constitute an act of refusal to supply. It is considered to have been sufficiently demonstrated that this represented an abnormal reaction by the dominant undertaking to potential competition.
In the opinion of the Competition Authority, it is likely that these are serious infringements which are liable to distort competition. It is also sufficiently likely that a wait for the final decision of the Competition Authority could lead to a distortion of competition. For these reasons, it is considered necessary to instruct Íslandspóstur to enter into an agreement with Póstmarkaðurinn on specified terms.
The decision of the Competition Authority is valid until 1 August 2010. If a decision has not been made in the matter within this period, it will be considered whether it is necessary to extend this interim decision in order to achieve its objectives.
Background information
On 27 January 2010, the Competition Authority carried out searches at the premises of Íslandspóstur hf. in connection with alleged breaches of competition law and decisions of the competition authorities.
Paragraph 3 of Article 16 of the Competition Act provides that the Competition Authority is authorised to make provisional decisions in individual cases if: „…it is likely that the conduct or circumstances under consideration contravenes the provisions of the Competition Act or decisions taken on the basis thereof…“. It is also a condition that the matter cannot be delayed.
See the interim decision for details. No. 1/2010.
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