Price increases and monitoring of potential competition breaches

Rising prices, all else being equal, reduces
purchasing power, reduces the public's quality of life and disrupts economic fundamentals in
operation of households. These viewpoints have, among other things, been reflected in
collective bargaining. Inflation also creates uncertainty in operations, all else being equal.
of businesses and draws the strength from the economy.

Information page
Opened

Under the current circumstances, it is therefore
It is important to keep a watchful eye on any form of barriers to competition, but
Barriers to competition can consist of the conduct of companies, the structure of markets or
the framework that the government provides for the markets.

With this in mind, the Competition Authority has
opened an information page where information, actions and
Perspectives on price increases in Icelandic markets and competitive failures
which may be revealed under the prevailing economic conditions. Furthermore, the Competition Authority calls for
views and suggestions on possible barriers to competition and the observations that
related to this.

The information page is available here.

Analysis of
Margin development in key markets

The Competition Authority is also publishing an analysis today.
on the development of margins in key markets (foodstuffs, fuel and building materials). Takes
The analysis for the period from 2017 to 2022.

The analysis is available here and on the aforementioned
information page.

The analysis does not reveal clear indications.
regarding breaches of competition law that need to be addressed. In the opinion of
However, the following conclusions can be drawn from the Competition Authority.
the findings above:

• Pricing and markup of groceries and
  The fuel market is high in international comparison, which raises questions about
  whether the competitive restraint in those markets is sufficient.
• There are clear indications that increased competition
  with the arrival of Costco, and the subsequent response from Atlantsolur and other oil companies,
  has had a downward effect on the price of petrol. There, the countryside appears to be,
  with the exception of Akureyri, however, have remained and seen little change.
  The imposition of a levy on diesel sales raises questions about whether there is a lack of competition.
  there.

Then it awakens
notice that profit on the grocery market has increased by almost a third on
the period 2017-2021, in addition to which the profit on the building materials market has increased in
several important product categories in recent years.

Called
after discussion and points of view

The Competition Authority
calls for discussion and perspectives on the results of the analysis before
Further conclusions will be drawn from the information that has been collected. Requested
is awaiting viewpoints, information and suggestions on the above from
companies in the relevant markets, consumer advocates, governments and others
interested parties.

Then it counts
The supervision makes it necessary to hold further discussion on competition deficits.
the prevailing economic conditions and how greater pressure can be created on consumers,
to promote business enterprises and the economy. In this connection, however,
to bear in mind that the Competition Authority does not handle proper
Price monitoring. The monitoring, however, is aimed at detecting potential
breaches of competition law and other barriers to competition which, among other things, affect prices.

Therefore, the Competition Authority also requests
after views, information and tips on
the above from companies in the relevant markets, consumer advocates,
to the authorities and other interested parties. Information is requested, including,
views or suggestions on the following, see further discussion on information page of the supervisory authority:

1. Comments and views are requested on
   barriers to competition by companies in important markets of Icelandic business life, which
   may have appeared in a price increase for a product or service in recent months.
2. The Competition Authority invites submissions and
   indications on the state of competition in the banking and insurance markets which, among other things, can
   contribute to the monitoring and prioritisation of inspections and other tasks in
   supervision of competition in this area.
3. Views and information are requested from
   to executives of companies in key markets about the impact of competitive pressure
   in the relevant market has influence over the policy and decisions on dividend payments to
   shareholder.
4. Information and views are requested from
   owners of companies in key markets who hold a significant stake in more than
   a single company in the same market, regarding how their ownership oversight
   Supports competition and works against price increases.
5. Comments and views are requested on
   competition-restricting measures by public authorities, such as in laws or regulations, which are urgent
   to take up for discussion on the occasion of a price increase for a product or service
   in recent months.
6. Views are sought on priorities and
   Prioritisation of the Competition Authority's projects in the coming quarters, due to them
   the current economic situation.

Is it
Requests for viewpoints to be sent to the email address samkeppni@samkeppni.is
and is carried no later than 14 February.

On the previous
Part of the new year, the Competition Authority will hold further talks based on them.
views that will be received in connection with the above.