Hagar hf. request for reconsideration of the Competition Council's decision no. 38/2002

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• Case number: 17/2024
• Date: 21/6/2024
• Company:
  • Hagar hf.
  • Bananar ehf.
• Sectors:
  • Consumer goods, supplies and etc.
• Policy Area:
  • Mergers
• Summary

  The decision concerns a review of the conditions imposed on Hagar hf. and Bananar ehf. due to the merger of these companies in 2002, cf. Competition Council decision no. 38/2002. Hagar (formerly Baugur Group) was and still is a leading player in the grocery market in Iceland. Bananar handles wholesale of fruit and vegetables to grocery stores, restaurants and canteens and is extensive in that activity.

  The conclusion in decision no. 38/2002 was that the merger would have a harmful effect on competition and that intervention was necessary. A settlement was reached in the case and conditions were set, including that Bananar customers (and potential competitors of Hagar) would have easy access to wholesale fruit and vegetables from Bananar. There was also a condition that Hagar employees would not have access to Bananar sensitive business information.

  In April 2023, Hagar requested a review of the conditions for the group to be able to use Hagar´s information system. With a new settlement with Hagar and Bananar, the conditions have been changed so that employees with certain roles within Hagar IT department will have access to information in Bananar systems, but will be bound by confidentiality and access controls and traceability will be ensured. The Competition Authority believes that with the new settlement and conditions, a separation is ensured that achieves the same objectives as before and that the changes are not likely to distort competition.