Alleged infringement by Símen hf. with an offer for a 3G network key and subscription

In an interim decision today, the Competition Authority has provisionally banned the offer from Síminn called „3G netlykill and áskrift fyrir 0 kr. í allt sumar“ while the Authority's investigation into a complaint from Nova ehf. regarding the offer is ongoing. It is likely that the offer breaches the competition law prohibition on the abuse of a dominant position. It is likely to harm competition in a sensitive, nascent market where Nova, the youngest competitor in the telecommunications market, has been gaining some foothold.
The Competition Authority considers it necessary to ban the Síminn's offer at this stage because summer is the season when significant growth in the relevant market is most likely to be expected. Waiting to make a decision until the final outcome of the authority's investigation into Nova's complaint is available could therefore cause irreparable competitive harm to the market. A competitor could be driven out of the market as a result.
The provisional decision of the Competition Authority is valid until 1 October 2009.

Background information
The Competition Authority received a complaint from Nova ehf. on 28 May 2009 regarding an offer by Síminn hf. entitled „3G netlykill and subscription for 0 kr. all summer“. The above-mentioned offer from Síminn concerns a service for connecting computers to the Internet using a 3G (third-generation) dongle. Subscribers to Síminn's 3G data service receive a modem and a three-month subscription free of charge, but commit to a six-month contract with the company. This service can be useful for users, particularly holidaymakers in holiday homes, campsites and elsewhere, in areas where ADSL service is not available but 3G service is offered.  It was demanded that the conduct of Síminn be ruled unlawful and that Síminn be immediately ordered to cease its unlawful conduct. An interim order was sought in the matter.