Logo Competition

Review of the decision of the Competition Authority No. 40/2014, Abuse of Securitas hf.'s dominant market position

Analysis

On 19 December 2014, the Competition Authority concluded that Securitas hf. had infringed Article 11 of the Competition Act No. 44/2005 and Article 54 of the EEA Agreement, etc. Decision No. 40/2014, Securitas AB's abuse of its dominant market position, and imposed an administrative fine of kr. 80 million on Securitas. Securitas's breaches consisted of the company entering into exclusive purchase agreements with its customers for Home Guard and Business Guard, which prohibited the customers from contracting with other service providers for several years. The contracts also contained provisions designed to create increased customer loyalty to Securitas.

Securitas appealed this decision to the Competition Appeals Board, see case no. 1/2015. The appeal was accompanied by evidence that was not available when the Competition Authority made its decision. Securitas considered that this new information was relevant to the assessment of the company's conduct which led to Decision no. 40/2014. The new information related to Securitas's costs for entering into commercial contracts for security services. During the appeal board's proceedings, Securitas therefore requested a review of Decision No. 40/2014, cf. Article 24 of the Administrative Procedure Act No. 37/1993.  

The Competition Authority agreed to reopen the case on the basis of certain grounds which are set out in more detail in this decision. In the reopened case, a new assessment was made of Securitas's costs of entering into commercial contracts for security services, and it was also examined whether the information Securitas provided, which led to decision no. 40/2014, had been in accordance with Article 19 of the Competition Act. The case concluded with a settlement between the Competition Authority and Securitas, in which the company admitted to having breached Articles 11 and 19 of the Competition Act and Article 54 of the EEA Agreement, and pays an administrative fine of kr. 40 million. in addition, certain conditions are imposed on Securitas.

Decisions
Case number

45 / 2017

Date
15 December 2017
Company

Securitas Ltd.

Industries

Specialist services and other services

Various services not specified elsewhere

Subjects

Market dominance

Search

New website samkeppni.is

The other day, it was launched. Beta version of a new website. We welcome all suggestions and comments regarding the new website via the form below.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.