The Competition Authority
has today published on its website competitive indicator (e.g. competition
indicators) which provide indications of the state of competition
in this country. Where applicable, the position of Iceland is compared with nine
comparator countries. Particular attention is paid to indicators that provide indications of
The experience of Icelandic consumers and business managers regarding competitive performance in
various markets, concentration in selected markets and to barriers that can be
clear the way in order to increase competition and thereby contribute to increased
productivity and innovation.
The indicators are about that.
(i) how active the competition is, (ii) the degree of market concentration and its scope
market dominance, and (iii) the extent of barriers to entry in the market. As for
Regarding access barriers, the government can influence this by removing them.
to remove obstacles in order to increase competition and thereby promote greater productivity
and innovation.
The Competition Authority will update the competition indicators with
on a regular basis to facilitate consumers, businesses, governments,
The Competition Authority, the media and other stakeholders have access to information which
most useful in the discussion on how competition is conducted in Icelandic markets. It is noted that in some cases, the competition indicators are not published except every few years. For example, the PMR indicator from the OECD is published every 5 years, and the Competition Authority's opinion surveys are conducted every 3 years.
Around 42% of Icelandic consumers perceived
In 2019, a problem arose in the passenger service market due to insufficient competition.
also made 33% consumer transactions in the financial services market and 24% in the market
for food. At the same time, around a third of managers of Icelandic companies perceived
in 2020 that consultation or abuse of a dominant market position exists in those
markets in which the person works.
Then there is the scope
market dominance. market dominance) more here in the country than in all
the comparison countries, and that for all the years for which figures are available. In those four markets
The density is high where they are detected, but has been decreasing over three
markets. However, it should be noted here that there is considerable common ground.
ownership exists in the aforementioned four markets but in those cases
traditional compression ratios can underestimate compression in the market but they
do not take this into account.
The situation is worrying.
Barriers to entry are bad, but in Iceland there are trade barriers.
second-largest in international trade of the countries under consideration. Then there is the regulatory burden
also high in this country compared to comparable countries, but it was the second highest in
Iceland, when looking at the economy as a whole, and especially when looking at
retail. The situation is better in the online sector, but there is a regulatory burden
in Iceland the fourth lowest among countries in the comparison group.
The competitive indicator is to find here. It can also be viewed on Competition Authority's GRID page but that's where the pointers are hosted.
Valur Þráinsson, Chief Economist of the Competition Authority:
„It is in the interest of Icelandic consumers and
that active competition exists in the markets here in Iceland and that access to them is available
is as smooth as possible. International comparison seems to suggest that
that the barriers to entry into Icelandic markets are too high and, furthermore, that it is
a concern that around a third of managers of Icelandic companies will notice
collusion or abuse of a dominant market position. With the regular publication
The Competition Authority hopes that the competition indicators will be used by the government, the media,
that interest groups and other stakeholders have a better overview of competitive activity on
to the Icelandic markets, which facilitates the analysis of available opportunities for improvement.
place.“
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