The Competition Authority is today publishing an opinion for public authorities on competition barriers related to the rental of public sector housing.,
No. 1/2012. It directs public authorities, at both national and local level, to seek tenders through an objective, impartial and transparent process when selling or leasing out property or other scarce resources to undertakings operating in a competitive environment. When determining the terms, such as the sale or rental price, or the duration of the lease, care must be taken not to distort competition. It is also recommended that public authorities establish and publish general procedures on this matter.
The reason for this opinion is that in recent years, the competition authorities have been investigating several cases concerning the arrangement of the rental of premises by public bodies, i.e. local authorities and other government bodies, to business operators. Furthermore, following the financial collapse, the Competition Authority has placed special emphasis on public bodies supporting competition in their activities and ensuring that their actions do not lead to barriers to competition. In the Competition Authority's report
No. 2/2008, Robust development and market opening, which, among other things, discusses public competition restrictions and the importance of preventing them in the wake of the economic crash.
The Competition Authority's investigation into the Ministry of Education and Culture's lease of the Héraðsskólinn at Núpur in Dýrafjörður premises for hotel operations was one of the reasons for the publication of an opinion.
No. 1/2012. Here you can access
Copy of a letter From the Competition Authority to the Ministry of Education and Culture, dated. 27 August 2012, which concludes that the Ministry's handling of the property's lease had a detrimental effect on competition within the meaning of Article 16(1)(b) of the Competition Act.
