Merger of Kaupfélag Skagfirðinga svf. and Mjólku ehf./Eyjabú ehf.

The Competition Authority received a merger notification on 18 September 2009 concerning the merger of Kaupfélag Skagfirðinga svf. and Mjólku ehf./Eyjabú ehf. The Competition Authority considered the merger to be contrary to the objectives of the Competition Act. However, the merger did not fall within the scope of the Competition Act due to an exemption provision in the Agriculture Act, and therefore there was no legal basis for intervention.

The Competition Authority, on the other hand, addressed an opinion to the Minister of Agriculture, see opinion No. 1/2009 Harmful concentration in the dairy industry and the effect of the Agriculture Act on competition, directing the minister to amend the competition-restricting provisions of the Agriculture Act so that competition can thrive in the dairy industry for the benefit of farmers and consumers.