Resolution search: Enter a word and/or choose from the boxes bellow

Merger of Fagkaup ehf. and Jóhann Ólafsson & co ehf

The Icelandic Competition Authority reviewed Fagkaup ehf.’s acquisition of all shares in Jóhann Ólafsson & Co. ehf. The merger, notified in August 2024, raised concerns about potential anti-competitive effects. The investigation revealed overlaps in wholesale markets for light bulbs, LED products, specialized lighting equipment for street lighting, and a broader electrical goods market for professionals. The combined entity would hold over 50% market share in light bulbs and LED products and over 70% in street lighting, indicating a presumption of dominance. Competitors expressed concerns about foreclosure and increased concentration.

 

Given Jóhann Ólafsson’s declining competitive strength, the case was resolved through a settlement imposing conditions:

  1. Wholesale supply obligations for LedVance/OSRAM light bulbs on fair and non-discriminatory terms.
  2. Divestiture of a supplier relationship to maintain competition in street lighting.

With these remedies, the Authority approved the merger.