Samskip hf. v. The Competition Authority

The Competition Authority
has been investigating alleged illegal collusion between Samskip and Eimskip. Factors
Eimskip concluded on 16 June when the company signed a settlement with the Competition Authority.
but it entails, among other things, that Eimskip acknowledges serious violations of
competition law and pays a government fine. 

Í
The settlement also includes that Eimskip undertakes to take measures to
to work against further infringements and to strengthen competition, in accordance with Article 3 of the settlement.
In paragraph 3 of Article 3 of the agreement, it is stated that Eimskip undertakes to
to cease all business cooperation with Samskip. This also entails that
Eimskip undertakes not to cooperate with other companies in
any kind of transport service if Samskip also cooperate with the relevant party
company. This does not apply if Eimskip can demonstrate to the Competition Authority
that the nature of the relevant cooperation is such that there is no risk of a disruption to
Competition between Eimskip and Samskip.

Í
Following Eimskip's settlement, Samskip filed a complaint with the Competition Appeals Board
where the company demanded that paragraph 3 of article 3 of the agreement with
Eimskip would be invalidated. Samskip, among other things, believed that the Competition Authority
would have breached the fundamental principles of administrative law concerning the right of objection, proportionality and
equality in accordance with the aforementioned provisions of the settlement. In its appeal to the Appeals Board
Samskip argued that the instructions constituted an unlawful restriction of contractual and
the company's freedom of enterprise which strengthened Eimskip's dominant market position but weakened
the position of Samskip. Before the Appeals Board, the Competition Authority demanded that
the claim of Samskip would be dismissed. Furthermore, the authority argued that the said
Eimskip's commitment would be both lawful and necessary in light of the serious
a breach of competition law which Eimskip had admitted to.

With
the decision of the Competition Appeals Board of 2 December 2021 was appealed by Samskip
rejected by the committee. The decision of the appeals committee states that „the one who
enters into an agreement [having] the authority to submit to conditions and
an administrative fine to prevent further breaches and to promote competition and the like
with his own interests as a guide. By its very nature, such an agreement
always entails a limitation on the cooperation of the parties who have settled
An investigation into a case of illegal collusion.“ Samskip had not been entitled to that
to have been involved in the settlement with Eimskip and cannot challenge the said provision
of the settlement before the Appeals Board. In this connection, it was noted that elements of Samskip
was still unfinished. The appeal board therefore considered it inevitable to dismiss Samskip's appeal.
from the committee.