Abuse of a dominant market position by machinery and equipment

In its decision, the Competition Authority concluded that the company Vélar og verkfæri had abused its dominant market position in the sale of material for the production of master key systems, thereby breaching the provisions of Article 11 of the Competition Act. No. 44/2005. The abuse by Vélum og verkfæri consisted of exclusive purchase agreements entered into with master key system service providers who purchased material to manufacture master key systems from Vélum og verkfæri. In this way, the company prevented master key system service providers from importing and selling master key systems from manufacturers other than ASSA in Sweden, and further worked against other foreign manufacturers gaining a foothold in the Icelandic market.

The decision concludes that the market for the sale of materials to manufacture master key systems is a distinct market, closely related to the market for the direct sale of master key systems to end-users. Machines and tools hold a monopoly position in the market concerned and, through their exclusive purchase agreements, created a significant barrier to entry.

The Competition Authority concluded that the company's infringement was serious and ordered it to pay a fine of kr. 15,000,000.