Annual report 2011
Renaissance of the Icelandic economy
Today the Icelandic Competition Authority (ICA) published its‘annual report for the year 2011 under the heading: Renaissance of the economy. This report covers ICA activity from the year 2010 and the ICA subjects and emphases for the year 2011. This report addresses for example these following cases:
- Commercials banks takeover of certain companies bound to conditions
The ICA explain its' sentiment towards ownership of commercials banks on business enterprises' and its' conditions imposed upon ownership like that with the purpose to redraw harmful competition effect (page 6).
- Reconstruction of companies needs to be accelerated – progress is to slow
ICA explain its' sentiment towards accelerate reconstruction of business and several of ICA projects that concern this reconstruction is addressed (page 8).
- ICA warns about condensation in the financial market and ICA imposed collaboration of banks
General angel of ICA is addressed towards condensation in the financial market. Summary of exemption given out by the ICA is in this report (page 9).
- Investigation of the competition laws violations leads to changes in the groceries market
Companies in the groceries market had to change their procedure due to decision made by the ICA regarding competition violation by Hagar, distribution company in groceries market and owner of 3 of the largest groceries stores in Iceland, and six meat processing companies (page 10).
- Busy year in competition surveillance - almost 1 billion Icelandic krona in fines (approx. 6.27M €)
This report covers all the major down raids, fines and other intervention from the year 2010. A brief write-up of all the decisions made by the ICA is listed up in the report. Also all rules from the appeal committee and all judgements from both district and Supreme Court.
- ICA focus on the year 2011 – Necessary to boost up the speed of economy renaissance (page 17)
Rögnvaldur J. Sæmundsson, chairman of the board:
„Experience has showed that competition accelerate necessary reconstruction and speeds up economic recovery. Actions that stall competition prevent urgency innovation and at the end, it has a negative impact in the interest of consumers.”
Páll Gunnar Pálsson, director:
„Icelandic Competition Authority has endeavoured to use its resources to accelerate economic recovery. For example, the ICA has set conditions to commercials banks takeovers in active companies to decrease the risk of competition unbalance by the banks.
ICA has been firmed in its observation and is alive to any competition breach that is showed to new and smaller companies that tries to get a foothold and grow alongside bigger competitor. If barriers like that are not prevented, consumers are especially likely to be a victim of retrench competition."
Annual report 2011 in Icelandic - PDF file - Opens in a new window