The Competition Authority has directed the Icelandic Meteorological Institute to ensure an immediate and clear separation of its competitive operations from the rest of its activities and to publish information about this separation publicly.
The background to the matter dates back to 2002, when the Competition Council imposed conditions on the Meteorological Institute concerning the financial separation of its competitive operations by Decision No. 13/2002. Those instructions are based on competition law and include, among other things, a requirement for separate accounting, market pricing and transparency in the operation of the part of the activity that is in competition with private entities. The Competition Authority considers that these instructions remain fully valid despite subsequent Act on the Icelandic Meteorological Institute.
The reason for the new reminder is information suggesting that it is still unclear from public data whether the applicable requirements for financial separation are being complied with. According to a previous decision by the competition authorities, the Met Office is required to keep its commercial activities separate through independent accounting, but the regulator's assessment is that the current arrangement does not meet these requirements.
The Met Office has been granted an extension of time to propose remedial action. The Competition Authority also reserves the right to further investigation and possible intervention should the occasion arise. The aim of such measures is to ensure a level playing field in the market and to prevent public activity from distorting competition with private sector operators.
The Competition Authority's address can be read in here in its entirety.
Read Decision No. 13/2002
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