By decision No. 3/2009 On 30 January 2009, the Competition Authority annulled the purchase by Valitor hf. of all shares in Euro Refund Group North á Íslandi ehf. (Tax Free). Valitor is primarily engaged in the issuance of payment cards and acquiring, while Tax Free's main business is the refund of value added tax to foreign tourists.
The Competition Authority concluded that the markets in which the companies operate were closely related. This was a merger that could create a significant opportunity, ability and incentive to exclude competitors in the markets for payment card operations, POS terminal rental, VAT refund services for foreign tourists and so-called foreign exchange conversion. The latter involves a service for foreign tourists, settling transactions made with credit cards in foreign currency. The merger was therefore considered to involve serious restrictions on competition.
ERGN appealed the decision of the Competition Authority to the Competition Appeals Board, demanding that the authority's decision be overturned on the grounds that it had not been proven that the merger would have a detrimental effect on competition. In May 2009, however, the Appeal Board upheld the Competition Authority's annulment of the merger. No. 6/2009 as it was considered to be fundamentally contrary to competition law.
ERGN and Valitor took the appeal board's decision to the courts and in February 2011 the District Court of Reykjavík the ruling was overturned as he found it had not been proven that the merger in question would harm competition. The Competition Authority appealed the district court's judgment to the Supreme Court. In its judgment today, dismissed Supreme Court The case from the district court. That decision means that the competition authorities' annulment of the merger stands.
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