The Competition Authority has recommended that public bodies, at both national and local level, seek tenders through an objective, impartial and transparent process when selling or leasing out property or other limited resources to undertakings operating in a competitive market. When determining the terms, such as the sale or rental price, or the duration of the lease, care must be taken not to distort competition..
The Competition Authority's investigation into the Ministry of Education and Culture's lease of the Héraðsskólinn at Núpur in Dýrafjörður premises for hotel operations was one of the reasons for the publication of Opinion No. 1/2012. It can be accessed here.
Copy of a letter From the Competition Authority to the Ministry of Education and Culture, dated. 27 August 2012, which concludes that the Ministry's handling of the property's lease had a detrimental effect on competition within the meaning of Article 16(1)(b) of the Competition Act.
