A news article on the Viðskiptablaðið website today discusses the merger between Landsprent ehf. and Torg Ltd. following the former company's acquisition of a printing press and other assets. The article contains inaccuracies regarding the Competition Authority's proceedings and the Competition Act, which need to be corrected.
The article incorrectly states that the merger was under investigation for almost a year. As the decision on the Competition Authority's website shows, Landsprent ehf. notified the Authority of the transaction as a merger on 9 November 2023. The Competition Authority's proceedings and investigation in the merger case concluded 21 December 2023 with a letter to the parties stating that no action would be taken regarding the merger. Notice of conclusion of the case was published on the supervisory authority's website on 22 December 2023. The publication of the decision on the handling and resolution of the case was, however, delayed due to other caseloads and insufficient funding.
The handling of the case therefore 30 working days. The investigation was conducted mainly in the first phase of the merger case, but the Competition Authority used 5 of the 90 days in the second phase of the investigation to complete data collection and conclude the case.
It is therefore incorrect to state that no merger took place for the purposes of competition law, as changes in the control of part of a business or undertaking can constitute a merger requiring notification, even if the seller is the estate of a company in bankruptcy.
The report also presents misleading information about the pace of merger cases in this country. In recent years, the Competition Authority has emphasised completing as many merger cases as possible that do not require intervention at the first phase. In this regard, it is worth pointing out that 73% Mergers notified to the Competition Authority between 2021 and 2023 concluded in the first phase, as the authority did not deem it necessary to investigate the matters further. This proportion is somewhat higher than in neighbouring countries, which is primarily due to the nature of the case, as a higher proportion of mergers in small economies with high concentration levels requires an in-depth investigation. Furthermore, merging parties make greater use of pre-notification discussions in many neighbouring countries, which can facilitate and speed up the merger review.
Otherwise, interested parties are advised to familiarise themselves with Decision no. 10/2024 and notification of the Competition Authority from 22 December 2023.
The report by Viðskiptablaðið is therefore fundamentally incorrect. The Competition Authority expects Viðskiptablaðið to correct its coverage.
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