Re-examination of part of the Competition Authority's decision no. 9/2005. Further investigation concerning the submission of Hardar Einarsson, LL.M., regarding alleged restrictions of competition in the articles of association of pension funds.

Decision No. 31/2008 of the Competition Authority concludes that the operating agreements between certain pension funds and their operators, as well as the funds' articles of association, do not contravene the provisions of Article 10. Article 10 of the Competition Act No. 44/2005. 

The Competition Authority considers that there are significant economic and managerial links between the Frjálsi Pension Fund and Kaupþing Bank, and therefore they constitute a single economic entity within the meaning of competition law. The Competition Authority also considers that there are significant economic and managerial links between the Icelandic Pension Fund and Landsbanki Íslands, and therefore they also constitute a single economic entity within the meaning of competition law. However, it is considered that there are no comparable links between the Almenni Pension Fund and Glitnir.

In the opinion of the Competition Authority, regarding the Articles of Association of the General Pension Fund and its operating agreement with Glitnir, it is considered that the operating arrangement creates an incentive for the operator to compete with other funds and that it is conducive to promoting competition between pension funds (i.e. inter-brand competition). Furthermore, the investigation revealed that the aforementioned arrangement does not involve any anti-competitive restrictions that would negatively affect the interests of the fund's members. On the contrary, it is to the benefit of all fund members that the greatest possible competition exists between the aforementioned pension funds.

As stated above, the agreements between Frjálsi Pension Fund and Íslenski Pension Fund and their operators do not fall under the provisions of Article 10 of the Competition Act, as these undertakings constitute a single economic unit. The Competition Authority would, however, like to make it clear that these agreements are similar in nature to the aforementioned agreement between Almenni Pension Fund and its service provider. Therefore, the Competition Authority considers that even if the agreements between Frjálsi lífeyrissjóðurinn and Íslenski lífeyrissjóðurinn and their operators fell under the provisions of Article 10. clause of the Competition Act, they would not contravene the provision, as the same substantive arguments would apply to those agreements as to the agreement between Almenna lífeyrissjóðsins and its operator.