The objective of the Law is to promote active competition and thus increase the efficiency of the means of production in the society. This objective is to be reached by:
- preventing unreasonable limitations or barriers to freedom of economic operation;
- preventing unfair trade practices, harmful absence of competition and restriction of competition;
- facilitating the entry of new competitors into the market.
The Law applies to any economic operation, including the manufacturing industry and trade in goods and services, irrespective of whether such an operation is conducted by individuals, companies, public parties or others.
The Law applies to agreements, terms and actions which are intended to have an effect in Iceland, but not to agreements, terms or actions which are solely intended to have an effect outside of Iceland.
The Law is divided into fourteen chapters, of which chapters no. 4,5 and 6 are the most important, since they deal with prohibitions against restrictions to competition, control with respect to restriction of competition and control with respect to unfair trade practices. Chapter no.6, which deals with control with respect to unfair trade practices, is quite connected with the provisions of the Trade Marks Act no. 47/1968. The provisions of Chapter No. 6 of the Competition Law are often claimed as well as the provisions of the Trade Marks Act in court cases regarding Trade Marks.
The competition Authority, the Competition Council and the Competition Appeals Committee perform the ordinary administration of matters within the sphere of the Law.
Since Iceland is a member state of the EEA, the competition rules of the EEA Agreement (which follow the EEC competition rules very closely) also apply in Iceland.
The content of this Briefing is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact S.B. Einarsdottir on +354-552 4140 or e-mail faktor@itn.is
