The Appeals Committee confirms a 45 m. ISK administrative fine against Sorpa bs. for the abusing of a dominant position in the market

Last December the Competition Authority imposed an 45 m ISK administrative fine on Sorpa bs, a waste management and solid waste-disposal firm owned by seven municipalities in the capital area.  According to the decision of the Competition Authority, no. 34/2012, Sorpa bs. had abused its dominant position in the market for the sorting of waste and for waste management. Sorpa did this by giving its owners, the municipalities, higher discounts than other customers, such as waste management companies, even though these companies brought more waste to Sorpa´s waste receiving plant than the municipalities. The Competition Authority directed Sorpa to review its tariff and contracts and bring in accordance with the competition act.

 

Sorpa appealed this decision to the Competition Appeals Committee and requested its annulment or as a last resort that the fine should be lowered. Sorpa bs. built its case on the premise that the competition act did not cover the operations of public companies such as Sorpa bs.   

The Competition Appeals Committee has by its ruling no. 1/2013 now confirmed the decision of the Competition Authority. The Appeals Committee concludes that there is no doubt that Sorpa bs. is an undertaking in the sense of competition law and that the competition act applies in the case. The Appeals Committee confirmed both that Sorpa bs. was guilty of abusing a dominant position and the amount of the administrative fine.