News
The Competition Authority imposes a 45 m. ISK fine on Sorpa bs for breaches against the Competition Act
In its decision no. 34/2012, published today, the Competition Authority has come to the conclusion that Sorpa bs has abused its dominant position in the market for the sorting of waste and for waste management. Sorpa is a waste management and solid waste-disposal firm owned by seven municipalities in the capital area. Sorpa abused its dominant position in the market by giving its owners, i.e. the municipalities in the capital area, higher discounts than it gave other customers, such as waste management companies, even though these companies brought more waste to Sorpa's waste receiving plant in Gufunes than the municipalities did. The Competition Authority has concluded that these different discounts of Sorpa have a harmful effect on competition.
Sorpa has pointed out that the higher discounts it gave to the municipalities were justified by the fact that the discounts were in effect dividend payments paid to the owners. The Competition Authority did not accept these arguments and concluded that Sorpa is an undertaking in the sense of the competition act and that it competes with other undertakings in a market, such as waste management companies. This has the result that Sorpa must be careful that its operations are not harmful to competition.
The Competition Authority imposed an 45 m. ISK administrative fine on Sorpa. In addition the Competition Authority directed Sorpa to review its tariff and contracts and bring in accordance with the competition act.