The Metropolitan Police ordered several online alcohol retailers to suspend sales yesterday. Under Icelandic law, the sale and distribution of alcohol are prohibited on national church holidays.
Legal loopholes
Alcohol was prohibited in Iceland in 1915, with restrictions gradually easing to allow wine in 1922, spirits in 1935, and beer in 1989. Retail sales remain tightly controlled by the State Alcohol and Tobacco Company of Iceland (ÁTVR) through its Vínbúðin stores.
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In 2020, however, a craft beer retailer exploited a legal loophole enabling foreign-based companies to sell alcohol directly to Icelandic consumers. This move paved the way for other retailers, including, more recently, the grocery-store chain Hagkaup.
Efforts by ÁTVR to halt these sales through the courts have been unsuccessful, and online sales continued without intervention from authorities.
Over the holidays, however, some online retailers appeared to have overstepped the legal limits, prompting action by the authorities.
Contravening the law
The Metropolitan Police confirmed that they had ordered several online alcohol retailers to suspend sales, emphasising regulations requiring alcohol retail locations to close on national church holidays. ÁTVR’s Vínbúðin stores, for example, remain closed on church holidays, Sundays, and other specified days.
According to RÚV, affected businesses include Smáríkið and Nýja Vínbúðin, both of which have been selling alcohol through online platforms and offering pick-up services at city locations. Detective Superintendent Ásmundur Rúnar Gylfason of the Metropolitan Police noted that the operators responded cooperatively, complying promptly with the suspension orders.
A notice on Smáríkið’s website attributed the closure to “uncontrollable circumstances” and assured customers that operations would resume the next day, enabling them to either collect their orders or request refunds.
