The Competition Authority has been investigating the request by Síminn hf. and Skjárinn ehf. to annul a decision of the Competition Council. No. 10/2005, Merger of Landsími Íslands hf. and Íslenska sjónvarpsfélagið hf. Following discussions with the parties, the Competition Authority has agreed to amend the existing conditions by lifting the prohibition on the merger of the companies. In this context, Síminn and Skjárinn have agreed to comply with certain binding conditions in their operations. The conditions are designed to mitigate the risk of potential anti-competitive effects arising from the merger.
Accordingly, Síminn and Skjárinn have agreed to be bound by the following main conditions in their operations:
- If Skjárinn is run as a separate unit within Síminn, the unit shall have an independent financial and operating account. The accounting for Skjárinn shall be independent and the financial reporting in accordance with the main principles of the Act on Annual Accounts.
- In this context, 'Skjár' refers to the operation of a domestic linear television channel. Currently, these are the television channels Skjárinn and Skjársport. Síminn is prohibited from making the inclusion of Skjár's service a condition of the purchase of telecommunications services provided by the company.
- Síminn is prohibited from bundling the sale of the company's telecommunications services and Skjárinn's services at a price or on commercial terms that can be equated to such a condition. This depends on whether Skjárinn is a separate operating company or a distinct unit within Síminn.
- The Service elements of the Screen shall be sufficiently operationally separated from the other services of Síminn, including in cost accounting, marketing, sales, pricing and terms and conditions.
- Monitoring Committee on equal access for telecommunications operators to the wholesale systems, technical solutions and services of Míla and Síminn, pursuant to a decision of the Competition Authority. No. 6/2013, as amended, has oversight of the compliance with the terms of the settlement.
The above conditions are based on an assessment of the competitive conditions in the relevant markets. This assessment is based on data and perspectives from companies and governments in the media and telecommunications markets. Furthermore, an assessment was made of international developments in the media market, particularly potential changes in the market for subscription television.
The Competition Authority will shortly publish a decision on its website, in which the conditions for it will be explained in more detail.
