With Decision no. 45/2017, published today, concludes an investigation concerning Securitas Ltd's exclusive contracts with its customers for Home Guard and Business Guard. The contracts in question prohibited customers from doing business with other service providers for three years. (36 months).
The Competition Authority's decision is based on a settlement, in which Securitas acknowledges that by entering into these agreements, it breached the prohibition in Article 11 of the Competition Act against the abuse of a dominant position. Furthermore, Securitas will take measures to ensure that its contracts with customers do not hinder competition. This will include, amongst other things, reviewing all of the company's commercial contracts.
Securitas has also acknowledged that its provision of information during a previous investigation was not in accordance with the obligations imposed on undertakings by the information-provision provisions of Article 19 of the Competition Act. Securitas will pay a total of 40,000,000 kr. in respect of Articles 11 and 19.
The background to the matter is that with Decision No. 40/2014 The Competition Authority concluded that Securitas hf. had breached Article 11 of the Competition Act and imposed an administrative fine of 80,000,000 (eighty million) króna on Securitas hf. Securitas's infringement consisted of the company entering into exclusive purchase agreements with its customers for its so-called Home Security and Business Security services, whereby the customers were prohibited from contracting with other service providers for several years. The contracts also contained provisions designed to foster increased customer loyalty to Securitas Ltd.
Securitas hf. appealed this decision to the Competition Appeals Board, see case no. 1/2015. The appeal was accompanied by evidence that was not available when the Competition Authority made its decision. Securitas hf. considered that this new information was relevant to the assessment of the company's conduct which led to Decision no. 40/2014. The new information related to the costs for Securitas Ltd. of entering into commercial contracts for security services. During the appeal board's proceedings, Securitas Ltd. therefore requested a reconsideration of Decision No. 40/2014, cf. Article 24 of the Administrative Procedure Act No. 37/1993. The Competition Authority agreed to reopen the case on the basis of certain grounds which are set out in more detail in the decision.
In the re-opened case, a new assessment was made of Securitas's costs. in the conclusion of commercial contracts for security services, and also whether the information provided by Securitas Ltd. which led to decision no. 40/2014 had been in accordance with Article 19 of the Competition Act. By a decision of the Competition Authority published today, the Competition Authority and Securitas hf. have entered into a settlement in order to conclude the case concerning the review of the decision, pursuant to Article 17(f) of the Competition Act, and Article 22 of the Rules of Procedure of the Competition Authority No. 880/2005.
"*" indicates required fields
