The Competition Authority has today published a decision No. 11/2013, Complaint by Íslenska gámafélagið ehf. regarding the waste collection arrangement for holiday homes in Bláskógabyggð and Grímsnes- og Grafningshreppur. In its decision, the Competition Authority recommends that Bláskógabyggð and Grímsnes- og Grafningshreppur use tenders, where applicable, or price enquiries when procuring waste collection services. It is recommended that the duration of contracts with service contractors for waste collection be determined with regard to the long-term interests of the municipalities in stimulating competition and thus ensuring cost-effective waste collection. It is also recommended that the Opinion of the Competition Authority no. 4/2009, Public procurement, competition and barriers to competition – Checklist for avoiding unlawful barriers to competition, shall be taken into account when making decisions on the councils' waste collection.
The investigation into the matter began following The Competition Authority received a submission from the Icelandic Container Society Ltd. The submission complained about the arrangement for waste collection at holiday homes in the municipalities following their tender for waste collection. The submission stated that following the tender that operators and owners of holiday homes were required to direct their business to the service contractor who won the tender when they required waste collection services. By waste collection services in this context, reference is made to the service where waste is collected „to the door“. Íslenska gámafélagið considered that this arrangement breached Article 10 of the Competition Act No. 44/2005, as well as Article 16(1)(b) of the same Act.
The Competition Authority was of the opinion that the tender for waste collection in the municipalities, issued by Bláskógabyggð and Grímsnes- og Grafningshreppur, had not distorted competition within the meaning of Article 10 or Article 16(1)(b) of the Competition Act. The Competition Authority, however, issues the aforementioned recommendations to the municipalities with the aim of ensuring effective competition in the future in their tenders and procurement of waste collection services.
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