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The Competition Authority issues an opinion to the Minister of Interior

6/14/2013

Today the Competition Authority issued an opinion no 1/2013 to the Minister of Interior (innanríkisráðherra) and the Icelandic Road Administration (Vegagerðin) concerning serious distortions to competition stemming from the monopoly, granted by the Icelandic Road Administration, to the Federation of Municipalities in the Southern Peninsula, to operate bus routes in the area, i.a. between Keflavik International Airport and Reykjavik.

Previously, the Competition Authority had concluded that it was not authorised by law to annull the contracts of the Federation of Municipalities in the Southern Peninsula that were intended to monopolise the bus route.

The opinion was written as a result of complaints by Reykjavik Excursions (Kynnisferðir), the Confederation of Icelandic Employers (SA) and the Icelandic Travel Industry Associaton (SAF).

The Minister of Interior was told that he should try to find ways to stop the plans of the Federation of Municipalities in the Southern Peninsula to monopolise the bus route between the International Airport and Reykjavik. The Minister was encouraged to ask the Parliament for a change in the legal framework if necessary. The Federation of Municipalities in the Southern Peninsula was also told to stop immediately their plans to monopolise the aforementioned bus route.

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