Merger of FoodCo hf. and Gleðipinnar ehf

The Competition Authority examined the merger of FoodCo hf. and Gleðipinnar ehf. FoodCo owns and operates restaurants under seven different brands in the capital region. Gleðipinnar operates the Egilshöll bowling alley as well as the Shake&Pizza restaurant. Subsidiaries of Gleðipinnar operate restaurants under the brand names Hamborgarafabrikkan and BlackBox Pizzeria.

Following an investigation, the Competition Authority concluded that the merger neither resulted in, nor created, a dominant position, nor would it otherwise significantly distort competition in the market. There were therefore no grounds to take action regarding the merger. It was clear, however, that the merged entity's position had become quite strong, given the information that had emerged regarding market share. This situation could be subject to closer scrutiny in the event of further market concentration. Similarly, it might later be the case that the market for restaurants and fast-food outlets is defined more narrowly than was considered necessary for the outcome of the case.