Today, the Competition Appeals Board delivered its ruling in the case of the oil companies against the Competition Council. The companies had appealed to the Appeals Board the Competition Council's decision concerning their illegal collusion.
The decision of the Competition Appeal Board confirms, among other things, the Competition Council's finding that for a period of approximately nine years, the oil companies engaged in organised, extensive, and continuous illegal collusion. Furthermore, the views of the oil companies that their breach of competition law was statute-barred, or that the proceedings and investigation of the case were so deficient as to invalidate the competition council's decision, are not upheld. On the contrary, the ruling of the Competition Appeals Board can be interpreted as confirming that the competition authorities' investigation was thorough. The Appeals Board also largely confirms the Competition Council's findings regarding the oil companies' individual serious breaches of competition law.
Although the Competition Appeals Board confirmed the Competition Council's finding that the oil companies' profit in the form of so-called unit margins on liquid fuels increased during the period 1996-2001 compared to the years 1993-1995 by 6.5 billion króna, the board considered it appropriate to reduce the fines that the Competition Council had imposed on the oil companies. The Appeals Board therefore decides on a government fine of 900 million króna against Olíufélagið ehf. Due to cooperation with the competition authorities in clarifying the case, Olíufélagið is required to pay 490 million króna. The Competition Council had imposed a fine of 1,100 m.kr. and ordered the company to pay 605 m.kr. Skeljungs hf. is ordered to pay 450 m.kr. instead of 1,100 m. kr. as determined by the Competition Council, and Olíuverslun Íslands hf. is given an administrative fine of 700 m.kr. and is required to pay 560 m.kr. instead of 880 m.kr. in the Competition Council's decision.
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