With Decision no. 43/2017, published today, concludes the Competition Authority's investigation into violations by the Association of Estate Agents (FF) of Article 12 of the Competition Act. The association requested a settlement, and the Competition Authority has exercised its authority under the competition law to reach a settlement with the association. The decision and the underlying settlement prevent anti-competitive conduct. At the same time, they ensure that the operation of the property sales market in Iceland is based on the principles of healthy competition.
The arrogance
Under Article 12 of the Competition Act, associations of undertakings, such as FF, are prohibited from deciding on restrictions of competition or encouraging barriers that are prohibited under the Act. Through the settlement, FF acknowledges, among other things, that the association's activities have contravened Article 12 of the Competition Act with regard to the following conduct:
FF held a discussion on sales commission and the collection of an administration fee among its member companies (estate agents).
FF urged its member companies to advertise properties exclusively for sale on a website owned by FF and to avoid other media.
It is important to prevent a recurrence of similar conduct in the property sales market, thereby promoting more effective competition in the long term in this important consumer market. In addition to admitting the infringement and agreeing to pay a 6 million króna administrative fine for it, FF has also agreed to make changes to its operations and implement, among other things, a competition compliance programme, as well as ensuring that the management and staff of FF, and the association's member companies—i.e., estate agents who are members of FF—are always fully informed of the requirements that competition law places on the activities of companies and business associations in competitive markets.
The property market is a crucial consumer market. It is vital for the market's continued operation that it is built on the foundations of healthy competition. This is the prerequisite for customers to enjoy better prices, quality and choice. The conditions set out in this decision will ensure that future market activity is based on these principles.
The case as a whole, and its handling, is described in more detail in the decision.
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