The Competition Authority's investigation into the alleged abuse of a dominant market position by Mjólkursamsalan ehf.

The Competition Authority launched an investigation into the alleged abuse of a dominant position by Mjólkursamsalan ehf. in the market for the production and wholesale of dairy products with a search in June 2007. The investigation was prompted by complaints from Mjólka ehf. The Competition Authority concluded that the evidence obtained in the case indicates that MS responded to the increased competition in the market, which existed following Mjólku's entry in 2005 and lasted until 2009, firmly and vigorously. The increased competition provided Mjólkursamsalan with significant and necessary market discipline, from which consumers benefited through an increased range of products and lower prices, and furthermore a higher milk price for farmers. However, the evidence in the case does not indicate that Mjólkursamsalan has acted outside the framework of competition law. It has not been established that Mjólkursamsalan, through systematic and organised actions, has attempted to exclude competitors from the market by means of anti-competitive conduct. In light of this, the Competition Authority sees no reason for further action.