The Competition Authority has today taken an interim decision regarding a likely breach by Síminn hf., Noona Labs ehf. and Noona Iceland ehf. of the prohibition on carrying out a merger before the Competition Authority has taken a position on it. The acquisition of all of Noona's shares by Síminn has been notified to the Competition Authority, with a full notification received by the authority on 4 July. The Competition Authority's investigation into the merger has therefore only just begun.
In the opinion of the Competition Authority, data and information in the Authority's possession indicate that the merger parties have already begun marketing to new customers based on the merger, but Síminn will take over all of Noona Labs' domestic operations through the acquisition of Noona Iceland (hereinafter collectively referred to as Noona). The data also indicates that Noona has acquired new customers as a result of this marketing.
In EU/EEA competition law and Icelandic law, emphasis is placed on the fact that merging companies do not carry out a merger until the competition authorities have had the opportunity to lawfully investigate its competitive effects. This is important because, by its very nature, damage can be caused to customers or competitors if a merger is carried out before the competition authorities have had an opportunity to intervene, if necessary.
The interim order provides that Síminn and Nooni are obliged to cease all marketing based on the merger.
This interim decision seeks to ensure that the implementation of the merger is halted while the merger control is under review. Subsequently, the Competition Authority will investigate the alleged infringements in greater detail.
It should be made clear that this interim decision does not constitute a position on Símans' acquisition of Noona, i.e. the effects of the acquisition on competition, as the investigation into this is at an early stage. cf. the merger notification that Síminn has submitted to the Competition Authority regarding the merger, dated 4 July 2024.
The interim decision is valid until 9 August 2024. It is available here .
In accordance with the 3rd paragraph of Article 16 of the Competition Act no. 44/2005, the Competition Authority is authorised to make interim decisions in individual cases where it appears likely that the conduct or circumstances under consideration contravene the provisions of the Competition Act or decisions taken thereunder. The condition is that the matter cannot be delayed. In such decisions, a final assessment is therefore not made as to whether the conduct in question is unlawful.“
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