The Competition Authority of Iceland investigates dairy Skip to content

The Competition Authority of Iceland investigates dairy

The Competition Authority of Iceland confiscated documents stored in the facilities of the dairy Mjólkursamsalan ehf. (MS) and in the facilities of related companies yesterday, due to suspicion of violations of competition regulations.

According to the director of the Competition Authority, Páll Gunnar Pálsson, the documents had been confiscated to investigate whether MS and milk product companies Audhumla svf. and Osta- og smjörsalan sf. had abused their position as market leaders, Morgunbladid reports.

Osta- og smjörsalan recently merged with MS and Audhumla is a MS subsidiary.

“We have been following this market and it was our conclusion that an investigation would be necessary,” Pálsson said about yesterday’s events. “We have been following the food market. It is natural considering how important it is.”

Assistant director of MS Magnús Ólafsson said he did not expect the Competition Authority to discover anything illegal. Ólafsson said his company had complied with public regulations on pricing and that its terms of trade were transparent.

“The dairy industry has been exempt from competition regulations and therefore companies within the industry could merge. But that doesn’t change the fact that competition regulations in the market should be followed. It is our intention to do so,” Ólafsson said.

A statement from MS explained that mergers within the dairy industry had been necessary to increase efficiency, which consumers had benefited from. The statement said MS had complied with competition regulations and notified the Competition Authority about changes in its business, even though it was not obligated to do so.

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