Yesterday, the Business Council of Iceland and other parties held a presentation of new guidelines for businesses on competition law, under the title 'Hollráð um heilbrigða samkeppni'. I was invited, along with several figures from the business community, to give a speech on competition matters. The main points of my speech are set out below.
1. Publication of the instructions is a cause for celebration
Release Guidance for businesses on competition law is a matter for great celebration. They are a testament to the commitment of those responsible for the guidelines to strengthen competition in markets, reduce barriers to competition and reduce breaches of competition law.
This initiative therefore contributes to increased knowledge of competition law, provides an important check on established businesses and thus protects the public, the businesses themselves and the economy from the damage that can result from barriers to competition and breaches of competition law. It is best that a good partnership between the government and the business community is established for this major project. By publishing the guidelines, the business community has shown an important initiative in this regard.
2. Some projects related to the interaction between the Competition Authority and business life
On our part at the Competition Authority, we are fully committed to fostering a healthy interaction between business and government in the interest of effective competition. I would like to mention a few initiatives that are important in this regard:
- First and foremost, there is, of course, the Competition Authority's primary duty to apply competition law by identifying and investigating barriers to competition and taking action to stop such barriers and address breaches of competition law. More often than not, it is companies in the relevant markets that are the first to spot the barriers and bring them to the regulator's attention. This interaction between industry and the regulator is therefore very important.
Through this enforcement of competition law, competition law is gradually taking shape, and a clearer picture is emerging of the rights and obligations with which companies operate. It is also important that the Competition Authority keeps a watchful eye on any changes that may occur in the markets and uses the methods it deems best at any given time to analyse these changes.
The authority benefits from being part of a larger network of European competition authorities and, among other things, from the oversight of the EFTA Surveillance Authority, etc. Thus, the Competition Authority bases its conclusions in various respects on precedents and guidelines issued in European practice. In this regard, it may be noted Homepage of the EFTA Surveillance Authority, which contains detailed instructions in Icelandic on various matters concerning the application of competition rules in the European Economic Area.
- Furthermore, the Competition Authority wishes to conduct its work in such a way that its decisions are of benefit to businesses and are primarily preventative in effect. An important part of this is to provide information and guidance to markets.
a. With this in mind, the supervisory authority is working on changes to its website and intends to strengthen information sharing on social media.
b. The Supervisory Authority is preparing special promotional material which can be used by both company employees and the general public, as it is important to also engage the public's scrutiny in this regard.
c. The Competition Authority intends to continue the so-called A conversation about competition, but under that heading, the supervisory authority has entered into a dialogue with industry and government on competition matters, in a special series of meetings.
- In resolving cases in recent quarters, the Competition Authority has also increasingly closed cases with guidance to the parties, where there has not been considered to be a basis for more detailed investigations.
3. Companies made to find it easier to opt out of consultation – Recent Norwegian survey
At this juncture, it is appropriate to emphasise how crucial it is to make it easier for companies and their executives involved in illegal collusion to come forward. This refers to the so-called leniency rules.
It is interesting in this regard that the Norwegian competition authority recently carried out a large-scale survey among local business leaders, which revealed, among other things, that a third of the executives surveyed believed that illegal collusion existed in the market in which they operated. Effective means of exiting such collusion are therefore of immense importance.
4. Public competition barriers must be removed.
Finally, it is right to emphasise the necessity for the government to take broad-based action to ensure healthy competitive conditions in the markets. On this matter, the business community, its organisations and the Competition Authority have almost always spoken with one voice. The government is, in fact, often in a position to facilitate competition by making sensible decisions about the framework for business activities.
One of the major tasks in this area is to reduce unnecessary regulatory burden, and the Competition Authority is precisely seeking to use its powers to remove such obstacles.
5. A dynamic competitive environment paves the way for future changes.
As we all know, effective competition generally leads to lower prices and improved service. It is also an important breeding ground for innovation, and the force of competition compels company managers to run their businesses better and more efficiently. It follows that companies operating in a dynamic competitive environment are more likely to evolve and withstand the challenges that Icelandic business will face in various sectors in the coming years, alongside technological development and the market liberalisation that it can bring.
The publication of the guidelines has created a good foundation for cooperation between the business community and the government on more effective competition in the markets. The Competition Authority hopes that as many companies as possible will familiarise themselves with these guidelines, as well as the information and educational materials available on its website, www.samkeppni.is.
Páll Gunnar Pálsson
Director-General of the Competition Authority
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