Competition Restraints in Waste Management: The Implementation by the City of Reykjavík and Other Local Authorities in the Capital Region and on the South Coast of the Introduction of Recycling Bins for Paper and Cardboard

This opinion deals with the introduction by certain municipalities in the capital region and in Southland of the so-called Blue Bin for paper and cardboard. The opinion concludes that the municipalities' introduction of the Blue Bin constitutes harmful competition, but that due to provisions in special legislation, there are no grounds for the Competition Authority to apply binding intervention in the matter. The harmful effects of the municipalities' conduct consisted, on the one hand, in the fact that the City of Reykjavík did not present the residents' option to purchase the service from private parties in sufficiently clear terms. And, secondly, that other municipalities besides the City of Reykjavík compel residents to purchase the service known as Blátunnan exclusively from them. These municipalities tender the collection of waste, but not its reception, sorting and further processing. In the opinion, the Competition Authority makes recommendations to the municipalities intended to prevent the barriers to competition that would otherwise result from their conduct. The opinion also contains recommendations for the minister, intended to increase competition and freedom in trade related to waste management.