Price increases and competition – information page presented

Rising prices are to blame.
result in a reduction in purchasing power, impair the general public's quality of life and disrupt economic
conditions for the operation of households and businesses. Under the conditions that currently prevail
it is therefore important to keep a watchful eye on any kind of barriers to competition. The authorities
Many people around the world are now considering this.

Information page –
margin analysis

With this in mind, opened
The Competition Authority information page
on 22nd December last. It holds information, actions and
views relating to price increases and barriers to competition that may arise
A light in the current economic climate.

The information page includes, among other things
to find Discussion document
No. 3/2022, Margin development in key markets, i.e. groceries,
fuel and building materials. The analysis covers the period up to the year 2017 and beyond.
2022.

The Competition Authority is now
gather stakeholders' views on price increases, including on the development of margins and
matters related to it. At the same time, views are sought on the development of price levels and
the competitive situation in recent weeks and the outlook for the coming weeks and months.

Meeting with
Minister for Culture and Trade

Lilja Dögg Alfreðsdóttir, Minister of Culture
and the Minister for Trade has spoken out publicly on these matters that
recently. Among other things, she has taken part in open discussion forums.
competition authorities, on interplay
competition and inflation and impact
Competition for economic growth and wages.

At a meeting today, the information page was discussed.
Presented specifically to the minister. The supervisory authority's work was also further presented.
and the priorities in this area were discussed.

,One of the most effective tools
in competition and consumer affairs, effective communication of information to the public. To
Recently, many nations have been going through a special season in
economic affairs where prices have, among other things, been rising on various goods
and service. In such circumstances, it is important that everyone pulls together to
to curb inflation in order to protect the gains in purchasing power that have been made
in recent years. The Competition Authority's new information page is a milestone on that journey.
a journey that matters for maintaining competition and consumer policy,‘‘
said Lilja Alfreðsdóttir, Minister for Culture and Commerce.

„Vigorous competition drives companies
to optimise and offer the most competitive price possible at all times.
Competitive pressure thus prevents companies from going under.
cost increases onto customers. It is therefore a pressing task for
society as a whole to protect and promote competition, not least in markets that are highly
trade for the public's living standards“said Páll Gunnar Pálsson, CEO
The Competition Authority.

Background information:

Competition barriers that appear
The potential for price increases can be due to various factors.
to pull. They can be embodied in the conduct of companies, the organisation of markets or that
the framework that the government provides for the markets. As an independent authority in this area, it is
the role of the Competition Authority to intervene when necessary or
direct recommendations to businesses and governments regarding potential
barriers to competition. Furthermore, it is important that governments and companies in different
Consider how competition barriers to incumbents can be reduced.
circumstances.

As is stated in the news report, the Competition Authority is gathering
Stakeholder perspectives on price increases, to form the basis of the margin analysis.
and related matters. In this regard, views are sought on the following:

1. Comments and perspectives on barriers to competition
   of companies in important markets of Icelandic business life, which may have appeared
   in a rise in the price of goods or services in recent months.
2. Perspectives and information from the parties concerned
   companies in the grocery, fuel and building materials markets that shed further light
   light on the development of margins and margin ratios in these markets as described in
   the discussion document.
3. Perspectives and information from advocates
   Consumer in the grocery, fuel and building materials markets in connection with an analysis
   on the development of margins and margin ratios in the relevant markets as described in the discussion paper.
4. Views and suggestions on the state of competition on
   banking and insurance markets which can, inter alia, be useful for investigations and
   Prioritisation of inspections and other tasks in the monitoring of competition in this area
   field.
5. Perspectives and information from the management
   of companies in key markets on the impact of competitive pressure
   the relevant market has influence on the policy and decisions regarding dividends to
   shareholder.
6. Information and perspectives from business owners
   in key markets that hold a significant stake in more than one company on
   the same market, on how their ownership oversight supports competition
   and works against price increases.
7. Comments and perspectives on barriers to competition
   by the authorities, e.g. in laws or regulations, which urgently needs to be addressed
   coverage in connection with a rise in the price of goods or services in recent months.
8. Perspectives on emphasis and prioritisation in
   the Competition Authority's projects in the coming quarters, due to the economic situation
   which now prevail.
9. Views on the development of price levels and
   competitive conditions in recent weeks and months, i.e. regarding possible changes that
   to have an opinion on pricing and its reasons.
10. Perspectives on the outlook for the coming weeks and months,
    with regard to the development of price levels in key markets.

Deferment
to submit viewpoints via the email address samkeppni@samkeppni.is
expires on 14 February next.