Statement from Auðkenni Ltd. regarding the collaboration between banks and savings banks on the installation of new security equipment

The Competition Authority received a submission from Auðkenni Ltd. outlining the cooperation between banks and savings banks regarding the purchase, installation and operation of the so-called Todos security equipment (authentication keys). The letter stated that an exemption was requested on the basis of Article 15 of the Competition Act, should the Competition Authority consider that the installation of the equipment would distort competition between banks and savings banks. In its decision, the Competition Authority considered that the proposed cooperation was likely to distort competition and noted in this regard that the Icelandic banking market was a duopoly market where banks and savings banks, which operate primarily in the same markets, exploited a dominant position and that caution was therefore required when competitors collaborated under such circumstances. However, the supervisory authority decided to grant the collaboration a temporary exemption, directing the parties to ensure that the collaboration was limited to the strictly necessary elements related to the implementation of the security measures in order to prevent misuses to occur with users' online banking login details.