By its decision of 27 June, the Competition Authority has annulled the acquisition by Dagsbrún of Sena, which would have constituted a merger of the companies in the understanding of the Competition Act. Sena and companies owned by Sena operate in various sections of the entertainment sector, e.g. computer games, video and music. Dagsbrún is a holding and investment company which invests mainly in media, telecommunications, entertainment and related industries.
It is the opinion of the Competition Authority that the acquisition by Dagsbrún of Sena would reinforce the market dominance of both companies in various media and entertainment markets. In addition, it is the opinion of the Competition Authority that from this position the companies could restrict competition and decide their pricing, business terms and services without consideration of competitors and consumers.
In addition, it is the opinion of the Competition Authority that Baugur Group exercises control over Dagsbrún in light of its holdings and links with other large shareholders in the company. Furthermore, Baugur hf. has a controlling interest in Hagar hf. Sena and Hagar operate partly in related markets, particularly wholesale and retail of music CDs, video DVDs and computer games. The impact of these links on competition were also examined.
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