Recommendations addressed to Isavia on the organisation and charging of coach companies for car parks at Keflavik Airport.
The Competition Authority has today taken a decision directing Isavia ohf („Isavia“) on the organisation and charging of coach companies for car parks at Leif Erikson Airport. The recommendations are made in relation to an investigation into Isavia's charging for coach stands at the airport, i.e. the nearest stands, which are for scheduled coach services and so on. remote stands for coach operators providing other services, e.g. tours with groups, but also to some extent scheduled services.
The investigation was initiated primarily due to complaints from Allrahanda GL in January 2018 and 2019. In July 2018, the Competition Authority issued an interim decision suspending Isavia's charging of remote handling fees, which had come into effect in March of the same year, as it was considered likely to constitute an abuse of a dominant position and a breach of Article 11 of the Competition Act. clause of the Competition Act. In this regard, it was significant that Isavia enjoys a unique position as the public operator and the almost exclusive organiser of all facilities for companies operating at Keflavik Airport and within the airport terminal. The authority considered it likely that the charging constituted excessive pricing or price gouging, as well as discriminating against passenger transport companies in similar transactions, and was therefore halted. The Competition Appeals Board upheld the decision in October 2018.
The investigation into the matter was continued, but the Competition Authority has now concluded that there are no grounds for further binding intervention in relation to it. but instead issue recommendations to Isavia to establish a more robust framework for the organisation and charging of car parks for passenger transport to and from the airport.
In resolving matters in this area, the Competition Authority takes into account, among other things, the difficulties arising from COVID-19. There has been a collapse in the tourism sector, which has been reflected, among other things, in flights to and from the country being almost entirely cancelled for several weeks. It is foreseeable that it will take a long time to rebuild a robust tourism industry. Crucial to this will be how the organisation and framework for air travel to and from the country, and related services, are managed, and how the forces of competition are harnessed for this purpose. It is important that Isavia and the relevant government authorities work together in this regard. The recommendations now put forward are a step in this direction.
In the case, Isavia has announced a retrospective charge on coach companies that used remote stands for a period of around three months in 2018, when Isavia chose not to charge for the stands due to legal uncertainty the company believed existed regarding the charge. The Competition Authority believes that if this retrospective charging were to proceed, it would have serious consequences for many coach companies and would likely constitute a breach of Article 11 of the Competition Act. Such retrospective charging can be expected to be investigated by the Competition Authority in a separate administrative case. Isavia is therefore also instructed not to apply retrospective charging for periods that have elapsed prior to the making of this decision. See decision 32/2020.
"*" indicates required fields
