Míla hf. and Gagnaveita Reykjavíkur ehf. Specific cooperation on the laying of fibre-optic cables

By decision no. 18/2020, the Competition Authority has authorised Míla hf. (Míla) and Gagnaveitu Reykjavíkur ehf. (GR) to cooperate on the laying of fibre optic cables. This concerns a specific project in terms of its implementation and duration, whereby each company will lay two fibre optic cables in designated residential areas in Selfoss and Reykjanesbær, and will sell the other company one of the cables upon completion of the project.

The aim of the aforementioned collaboration is to increase efficiency and optimisation in the laying of fibre-optic cables, and also to minimise the inconvenience and disruption that accompanies such works in streets and on municipal and local authority grounds. It is expected that the partnership will have a positive effect on competition and increase consumer choice by establishing two independent fibre-optic networks in the areas covered by the agreement. The collaboration will be limited to utilising the same construction works to lay two technically separate and independent fibre-optic networks, thereby creating the basis for competition for the relevant customers.

The collaboration is subject to conditions which, among other things, are intended to ensure that the fibre-optic networks covered by the collaboration are technically separate and independent, and create a basis for competition for the relevant customers. The conditions are also intended to ensure that the cooperation is limited to this and does not involve any collusion on other matters, such as prices or customer service.

The above authority is based on Article 15 of the Competition Act No. 44/2005, which authorises the Competition Authority to grant an exemption from the prohibition on illegal collusion in Article 10 of the Competition Act.