Guidelines on exemptions from the prohibition on collusion – The Competition Authority seeks views

The Competition Authority is now publishing draft guidelines for consultation on exemptions under Article 15 of the Competition Act from the prohibition on collusion (Article 10) and restrictive practices (Article 12).

From the New Year, companies considering a partnership will have to assess for themselves whether such an arrangement complies with competition law. Likewise, business associations will have to assess whether their activities meet the requirements of competition law.

From the same point in time, the Competition Authority's power to grant undertakings and associations of undertakings exemptions from the prohibition on illegal collusion and restrictive practices will be abolished. The Competition Authority will be prohibited from issuing binding opinions on whether a company's cooperation meets the requirements of Article 15 of the Act.

The conditions of Article 15 for cooperation between companies will, however, remain unchanged, except that responsibility for the assessment will be transferred to the respective companies.

These changes are provided for in Act No. 103/2020 on amendments to the Competition Act.

In drafting the attached draft guidelines, comparable guidelines in neighbouring countries are taken into account, as well as... guidelines of the EFTA Surveillance Authority („ESA“) on corporate self-assessment, but they are of full guidance value in this country. Furthermore, solutions from Icelandic and European case law are also considered.

The drafts deal in particular with the following:

• Changes and what they mean for companies and their organisations.
• An assessment of whether or not a partnership is permitted.
• Requirements for proof that the exceptions to the law apply.
• Conditions of Article 15 for exemptions from the prohibition on cooperation and restrictions on competition.

The Competition Authority invites all interested parties to submit views and comments on the attached draft guidelines on the application of Article 15 of the Competition Act. Comments should be submitted to the Competition Authority no later than 27 November 2020, to the email address samkeppni@samkeppni.is .

At the same time, the Competition Authority intends to call for Open webinar (A conversation about competition) where interested parties will have the opportunity to take part in discussions about the guidelines and listen to viewpoints. Further details about the webinar will be provided later.

Draft guidelines on the application of Article 15 of the Competition Act may Find here (pdf).