Logo Competition
Send a suggestion
Send data
Menu
  1. Home
  2. Published material
  3. News

Mjólkursamsalan fined 480,000,000 kr. for serious breaches of competition law

29 May 2018
Snowcap Mountain

Héraðsdómur Reykjavíkur hefur í dag dæmt Mjólkursamsöluna (MS) til að greiða sekt að fjárhæð 440.000.000 kr. vegna misnotkunar á markaðsráðandi stöðu, með því að selja keppinautum sínum grundvallarhráefni til framleiðslu á mjólkurvörum, þ.e. hrámjólk, á hærra verði en MS sjálft og tengdir aðilar (Kaupfélag Skagfirðinga (KS) og dótturfélag þess) þurftu að greiða.

In determining the amount of the fine, the court took into account that MS's infringement was serious and had lasted for a long time. The infringement concerned the processing of an important consumer product and MS's actions were intended to seriously harm competition and consumers. Consideration was also given to the fact that this was a repeated offence. The judgment also finds that MS had weakened the competitive position of smaller competitors (e.g. Mjólkurbúsins Kú) and had a direct impact on their growth. 

The decision of the majority of the Competition Appeal Tribunal in ruling from 18 November The 2016 decision that the Agricultural Produce Act authorised the aforementioned conduct is therefore set aside. The judgment is in accordance with a dissenting opinion in the appeal board's ruling, which held that the decision of the Competition Authority should be upheld. No. 19/2016. 

The judgment also confirms the aforementioned decision of the appeals board that MS breached its duty to provide information under competition law by withholding important evidence from the Competition Authority. The judgment states on this point: „By their conduct, the principal claimant hindered the investigation of the case, and it was therefore necessary to commence the investigation anew.“. The amount of the fine, kr. 40,000,000, is considered appropriate. 

The legal action was brought, on the one hand, by the Competition Authority, see. News dated 26 November 2016, and, on the other hand, on behalf of MS. 

The basis for the regulator's investigation was a complaint from the Kú Dairy. 

Background information:

Í júlí 2016 komst Samkeppniseftirlitið að þeirri niðurstöðu að Mjólkursamsalan (MS) hefði með alvarlegum hætti brotið gegn banni 11. gr. samkeppnislaga við misnotkun á markaðsráðandi stöðu. Nánar tiltekið hefði MS misnotað markaðsráðandi stöðu sína með því að selja keppinautum sínum grundvallarhráefni til framleiðslu á mjólkurvörum, þ.e. hrámjólk, á óeðlilega háu verði á sama tíma og MS sjálft og tengdir aðilar (Kaupfélag Skagfirðinga (KS) og dótturfélag þess) fengu sama hráefni á mun lægra verði, og að auki undir kostnaðarverði. Niðurstaða eftirlitsins var að þetta hefði veitt MS og tengdum aðilum verulegt samkeppnisforskot gagnvart keppinautum. Með þessu móti hefði geta slíkra aðila til að keppa við MS og tengd félög verið skert með alvarlegum hætti, en á endanum væri það til þess fallið að skaða hagsmuni neytenda og bænda. 

In addition to fining MS for this infringement, among others, the Competition Authority issued an order to MS. The purpose of this was to prevent similar infringements from recurring and to create the conditions for small competitors of MS to operate in the market on a permanent basis.

MS appealed the decision of the Competition Authority to the Competition Appeals Tribunal, which issued its own ruling 18 November 2016. The majority of the Committee reached the conclusion, among other things, that the exemption provisions of the Agriculture Act had displaced the prohibition in competition law against the abuse of a dominant market position. Consequently, the fine imposed on MS for breaches of Article 11 of the Competition Act was quashed, and the same applies to the aforementioned orders of the Competition Authority. On the other hand, the Committee confirmed that MS had committed a serious breach of the competition law information obligation and that the company was liable to pay a fine of 40,000,000 kr. for this. 

Eftir skoðun á forsendum meirihluta áfrýjunarnefndar taldi Samkeppniseftirlitið að því bæri að bera framangreindan úrskurð undir dómstóla og stefndi MS fyrir Héraðsdóm Reykjavíkur til þess að þola ógildingu á framangreindri niðurstöðu meirihluta áfrýjunarnefndar um samspil búvörulaga og samkeppnislaga. Miðaði sú málshöfðun að því að fá úr því skorið hvort bann samkeppnislaga við misnotkun á markaðsráðandi stöðu tæki að fullu til MS. Jafnframt yrði fengin fullnaðarúrlausn um hvort að fyrirtækið skyldi sæta fullri ábyrgð vegna þeirrar háttsemi sem fjallað var um í málinu og Samkeppniseftirlitið hefði metið sem alvarleg brot gegn minni keppinautum. 

With legislation that came into force in 2011, the Competition Authority was granted the power to appeal the decisions of the appeals board to the courts, whereas prior to the law's enactment, only individual companies could bring such cases. The purpose of this legislative change was to better enable the Competition Authority to„to protect the legitimate public interest inherent in effective competition“. The legislature considered it important that the Competition Authority could bring an action„major and important issues“...concerning consumer interests before the courts. In this way, a balance would be maintained between the protection of the public interest and the private interests of companies in competition matters before the courts. 

As noted above, MS also referred the appeal panel's decision to the courts and sought to annul the part of the decision concerning a breach of the duty of disclosure.

 

 

Other news

All news and published material

The Court of Appeal directs the district court to consider the illegal collusion between Samskip and Eimskip.

The Court of Appeal has overturned a district court's dismissal order and directed a district judge to hear the case of the Competition Authority against Samskip...
  • 15 June 2026
  • NewsIn focus

Icelanders pay 55 per cent more for food than EU residents.

A discussion paper published today by the Competition Authority states that the price of food in Iceland is among the highest in Europe. Thus, Icelanders pay a...
  • 10 June 2026
  • NewsIn focus

Merger notification regarding Lyfju's acquisition of Borgar Apótek withdrawn

Lyfja hf. has notified the Competition Authority that the company and the owner of XY-lyfja ehf., which operates Borgar Apótek, have reached an agreement to drop...
  • 5th June 2026
  • News
Páll Gunnar Pálsson, Director-General of the Competition Authority. Composite image/CAP

The Competition Authority monitors the Norwegians' review of the banking market

The Norwegian competition authority has launched a review of competition in the country's banking market. This is the first step towards a possible market investigation...
  • 28 May 2026
  • News

The Norwegian Competition Authority is reviewing the banking market

The Norwegian Competition Authority has launched a review of competition in the country's banking market, and this is the first step towards a possible market investigation...
  • 27 May 2026
  • News

Comments sought on the merger of TVG Zimsen / Eimskips and Cargo Express

The Competition Authority is reviewing the merger between TVG Zimsen, Eimskip and Cargo Express. Cargo Express primarily sells transport services by freight flight...
  • 26 May 2026
  • News

In light of the coverage of the „Competition Authority's rules“ and mass redundancies

In media coverage of the collective redundancies at Berjaya Hotels Iceland, in connection with a possible takeover of the operation of Berjaya hotels by Icelandair Hotels, it has been reported, among other things, that...
  • 22 May 2026
  • News

The Competition Authority advises Storytel to exercise caution.

The Competition Authority advises Storytel to exercise caution in its marketing and pricing offers at a sensitive time when a new entrant is testing the waters in the market...
  • 22 May 2026
  • News

Kaldalón's purchase of FÍ Fasteignafélags properties approved

The Competition Authority has concluded its review of Kaldalóns hf.'s acquisition of all properties owned by FÍ Fasteignafélags slhf. The Authority's conclusion is that the merger...
  • 11 May 2026
  • News
Logo Competition
Borgartún 26, 105 Reykjavík
PO Box: 5120
Telephone: 585 0700

Shortcuts

  • Solutions
  • Laws and regulations
  • Complaints and enquiries
  • Instructional pages

Subjects

  • Subjects
  • Illegal collusion
  • Dominant market position
  • Merger case
  • Competition and the public sector
  • Market research

Competition Authority

  • About the Competition Authority
  • Governance and administration
  • Planning and strategy
  • Human resources
  • Procedure
  • Appellate Board
  • International cooperation
  • The symbol of the Competition Authority
  • Administrative review
  • Privacy Policy
New website (Beta)
Send a suggestion
Send data
  • Solutions
  • Decisions
  • Opinion
  • Reviews
  • Rulings
  • Reports and publications
  • Subjects
  • Illegal collusion
  • Dominant market position
  • Merger case
  • Competition and the public sector
  • Market research
  • Education
  • Market definitions
  • Competitive indicators
  • Instructional pages
  • A conversation about competition
  • Frequently Asked Questions
  • Complaints and enquiries
  • Laws and regulations
  • Published material
  • News
  • Blog posts
  • In focus
  • Videos
  • Speeches and presentations
  • Reduction of VAT on fuel
  • About the Competition Authority
  • Governance and administration
  • Planning and strategy
  • Human resources
  • Procedure
  • Appellate Board
  • International cooperation
  • The symbol of the Competition Authority
  • Administrative review
  • Contact Us

Search

Leita..

The artificial intelligence is thinking...

New website samkeppni.is

The other day, it was launched. Beta version of a new website. We welcome all suggestions and comments regarding the new website via the form below.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.