On 21 April, the Competition Authority carried out a search at Skiptum hf., Síminn hf., Míla ehf. and Tæknivörur ehf. The investigation concerns, among other things, whether Síminn has abused its dominant market position through anti-competitive practices, which were primarily directed at Nova.
Evidence found during the search has led the Competition Authority to take provisional measures today. Section 3 of Article 16 of the Competition Act provides that the Competition Authority is authorised to make interim decisions in individual cases if: „…it is probable that the conduct or circumstances under investigation contravene the provisions of the competition law…“. It is also a condition that the matter cannot be delayed. Such decisions therefore do not constitute a final determination as to whether the actions in question are unlawful. The matter remains under investigation, and a final decision will be made when the investigation concludes.
Nova has stated that the company has become aware that Síminn has recently been making special offers to Nova customers who are considered to be heavy users, more so than is generally the case. Síminn has been calling these users and offering them a new, unofficial subscription plan. Nova believes this constitutes a misuse of confidential data on phone usage generated by the interconnection of Síminn's and Nova's telecommunications networks. Síminn has denied breaching competition law.
The Competition Authority's decision concludes that it is likely that Síminn has taken extensive illegal actions in order to win important customers from Nova through specific price reductions and the improper use of confidential information about their phone usage.iptavina Nova. Útbjó Síminn lista sem hefur að gefa sundurgreinanlegar upplýsingar um mörg þúsund viðskiptavina Nova. These lists not only contain information on the phone numbers and names of the relevant Nova customers, but also their national identification numbers, home addresses and, in many cases, their job titles. In addition, the lists contain information on the number of calls each individual makes, their duration in minutes or seconds, and the length of the average call. On the basis of this information, Síminn was able to exert pressure on important customers of Nova. The Competition Authority's interim decision considers it likely that this constitutes an abuse by Síminn of its dominant market position and a breach of Article 11 of the Competition Act.
Síminn has declared to the Competition Authority that the actions against Nova have been discontinued and that the company will not use the aforementioned information on its competitors' customers' phone usage if the Authority believes that a legal violation may have occurred. The interim decision is based on the assumption that Síminn will honour these declarations and will not take the aforementioned actions while the Competition Authority's proceedings are ongoing. The Competition Authority, however, urges customers of the Síminn's competitors to notify the Authority as soon as possible if they receive an offer from Síminn that appears to be based on information about their mobile phone usage.
See the Competition Authority's provisional decision for further details.No. 2/2010.
"*" indicates required fields
