The application of merger rules to companies in financial distress and the judgment of the Supreme Court of Iceland of 21 May 2025

On 27 March 2025, the Competition Authority submitted an opinion on the bill on amendments to the Agricultural Produce Act (matter 107, 156th Parliament). At the request of the Industry Committee, the Competition Authority has since attended two meetings of the committee to follow up on its opinion and answer questions from committee members, most recently on 16 May.

The meetings also discussed, among other things, the potential effects of the forthcoming Supreme Court judgment, which has now been handed down. The operation and effects of the exemption powers under the agricultural produce legislation were also discussed, along with a comparison with exemptions and the enforcement of supervision abroad. Furthermore, it was discussed whether exemption powers were needed to respond to the operational situation of meat processing plants. Specifically, a memorandum was requested from the Competition Authority on the powers under the Competition Act to allow mergers on the basis of the „company in distress“ rule.  Here is a link to review no. 2 – 2025  Opinion of the Competition Authority on the Bill on the Agricultural Produce Act (producer associations), matter 107 of the 156th Parliament.