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The Competition Appeals Board confirms an interim decision regarding Isavia's charging.

22 October 2018
Snowcap Mountain

On 17 July 2018, the Competition Authority made an interim decision in which Isavia ohf. was made to temporarily suspend the charging of fees at the outer (remote) bus stands at Leif Ericson Airport, which came into effect on 1 March 2018. Isavia had planned to significantly increase the aforementioned charges on 1 September, when the so-called discount period was due to end. This decision to suspend the charges was taken as it was considered likely that Isavia had abused its dominant market position through excessive pricing for the use of remote stands. It was also considered likely that Isavia had discriminated between customers in its pricing and terms. Furthermore, the Competition Authority considered that waiting for a final decision could harm competition and have significantly detrimental effects on the operations of companies that need to use the remote handling systems. This decision is valid until 31 December 2018.

 

Isavia appealed the Competition Authority's interim decision to the Competition Appeals Board, demanding that it be annulled. In its ruling today, the appeals board rejected this request by Isavia. The appeals board is based, among other things, on the fact that Isavia is in a monopoly position and that competition law places very strict requirements on such companies. The appeal board considers that Isavia's preparation for the charge was inadequate and that the company did not provide a satisfactory breakdown of the costs of providing the remote services. It is likely that Isavia's charging is excessive and unlawful, and it was urgent that action be taken. The appeal board's ruling is available here.

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