In a new decision, the Competition Authority found Skífan (now the Dagur Group) guilty of abusing its dominant position and thereby violating the prohibitive provisions of the Competition Act. This was done by means of agreements with Hagkaup (a retailer) on the sale of music CDs and computer games in 2003 and 2004 respectively, both of which involved exclusive purchasing agreements and anti-competitive discounts. Exclusive purchase in this context refers to the fact that Hagkaup undertook to buy wholesale a certain high proportion of all the goods in question exclusively from Skífan. Under the agreement, Skífan's competitors in the market for the goods in question were virtually excluded from doing business with Hagkaup, which is, among other things, a large retailer of music CDs. The conclusion of these agreements constituted a repeat offence, as in 2001 Skífan was ordered to pay a fine of ISK 12 million for a similar offence. Furthermore, the agreements violated an earlier decision by the competition authorities.
The Competition Authority ordered Skífan (now Dagur Group) to pay an administrative fine of ISK 65 million to the State Treasury.
