A new decision by the Competition Authority states that the holding company Ívar ehf. breached the competition law prohibition on implementing a merger before it has been authorised by the Competition Authority. The merger in question is that of Ívar ehf. and Lýsi hf.
Ivar and the Competition Authority reached a settlement in the case. Ivar is to pay an administrative fine of 12 million krónur for the infringement. The Competition Act 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 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 Ívar of its assessment that it appeared the prohibition in the Competition Act on the implementation of the merger between Ívar and Lýsi had been breached. Subsequently, Ívar approached the Authority and requested that a settlement be reached in the matter. Negotiations led to a settlement with the company, as the Competition Authority is permitted to do under competition law. This provision is intended to shorten the investigation and proceedings of the competition authorities.
Ívar is part of a corporate group that owns, among other things, the Ísfélag Vestmannaeyja and a large shareholding in the holding company for Árvakur.
The merger is dealt with in the Competition Authority's decision of 19 March 2010. No. 5/2010.
See the decision for details No. 30/2010.
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