Míla's independence increased due to the merger of Síminn and Skipti

In connection with the merger of Skipta hf. and Síminn hf., the companies have committed to the Competition Authority to increase the independence of Míla ehf. as the operator of the basic telecommunications network and thereby ensure the objectives of decision no. 6/2013, Changes to the structure of the Síminn Group will be implemented, provided that Síminn and Míla reach an agreement with the Competition Authority to this effect.

Previous decision, no. 6/2013

In accordance with the aforementioned decision, no. 6/2013, Skipti committed to making extensive changes to the structure and conduct of the Skipti Group in order to enhance competition. That decision concluded an investigation into several complaints that Síminn's competitors had directed to the Competition Authority. The investigation focused on whether Síminn had breached the competition law prohibition on the abuse of a dominant position. The decision took into account previous cases in which Síminn and its predecessors had been found to have abused their dominant position.

Í Decision no. 6/2013 For the first time, a clear and decisive separation was stipulated between, on the one hand, the group's core networks and the services for telecommunications operators related to these core networks, and on the other hand, Síminn's retail activities. According to the decision, Skipti and its subsidiaries were bound by detailed conditions intended to ensure this and thus prevent Skipti's position in basic telecommunications from being used to create an unfair competitive advantage for the company. The aim was to ensure that Telenor and its competitors were on a level playing field with regard to access to basic telecommunications networks and the purchase of telecommunications services from the group at a wholesale level. See a more detailed discussion of the decision here. 

The changes now

The merger of Skipta and Síminn will result in changes to the group, which necessitate changes to the aforementioned decision. Instead of Síminn and Míla being sister companies under the parent company Skipta, Míla will now be a subsidiary of Síminn. For this reason, it is necessary to make the following changes, among others, to the previous decision:

• The independence of Míla's board of directors from Síminn is strengthened. Accordingly, Míla's board members are to be independent of Síminn and its related companies. However, it is permitted for a minority of Míla's independent board members to also sit on the board of Síminn, but strict rules apply to their participation in Míla's board's work.
• Full separation of premises is required within a specified transition period. – Míla's rights to seek support services from its parent company are restricted by a previous settlement.
•  The independence of the supervisory board is strengthened. A member of staff from Míla's parent company currently sits on the supervisory board, but this will be prohibited following the change.

Monitoring Committee on the equitable access of telecommunications operators to networks, established by decision no. 6/2013, is tasked with ensuring that the aforementioned strengthening is smoothly implemented and safeguarding the interests of Míla's customers during the transition period of the Telia Group's amended undertakings.

The Competition Authority will shortly publish a decision on its website, which will provide further details of the above-mentioned changes.