2 results
Iceland
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- By Árni Vilhjálmsson, Logos – Legal Services, Reykjavik, Iceland, Ólafur Ari Jónsson, Logos – Legal Services, Reykjavik, Iceland, Eiríkur Hauksson, Logos – Legal Services, Reykjavik, Iceland
- General editor Maher M. Dabbah, Queen Mary University of London, Paul Lasok QC
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- Book:
- Merger Control Worldwide
- Published online:
- 05 November 2014
- Print publication:
- 31 May 2012, pp 676-704
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Summary
Merger control in Iceland has a relatively brief history. Such provisions were first introduced in 1993 when Icelandic rules were aligned with European Economic Area competition rules. An English translation of the Competition Act can be found on the Competition Authority’s website at www.samkeppni.is. There is also a Merger Notification and Procedures Template in English on the website, but the English version has not been updated to reflect the amendments to the Competition Act in 2008 when the rules governing merger control were changed considerably.
Iceland is a small country and its economy reflects that. Markets are often oligopolistic, simply due to the fact that the small market economy cannot sustain more companies. This often has an impact on mergers and their assessment. For a number of years the Icelandic economy was fairly robust and share prices rose steadily on the Icelandic Stock Exchange. Financial activity, including mergers and acquisitions, was considerable and Icelandic undertakings had grown and expanded its activities abroad. In October 2008 the financial sector witnessed the collapse of three major Icelandic commercial banks and was followed by a dramatic financial and economic crisis. As a result of those events the nature of mergers and acquisitions has changed. Most of the recent merger cases involve a financial undertaking acquiring a controlling authority over a company due to restructuring or refinancing. The competition authorities’ view of such mergers will be discussed below.
14 - Iceland
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- By Árni Vilhjálmsson, Ólafur Ari Jónsson, LOGOS Legal Services, Reykjavik, Iceland
- General editor Maher M. Dabbah, Queen Mary University of London, K. P. E. Lasok QC
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- Book:
- Merger Control Worldwide
- Published online:
- 30 July 2009
- Print publication:
- 29 May 2008, pp 60-66
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Summary
A new competition law was enacted on 1 July 2005, the Competition Act No. 44/2005 (hereinafter referred to as the “Competition Act 2005”), which replaces the current competition law from 1993. The main changes are of an administrative nature, with the merging of the Competition Authority and the Competition Council into a new entity called the Competition Authority. In addition the enforcement of rules on unfair trade practices has been divested to a new institution, the Consumer Agency. The merger control provision was not amended but is now numbered 17 instead of 18. An English version of the Competition Act 2005 is available on the Competition Authority's website, www.samkeppni.is.
The Competition Act 2005 was amended in April 2007. The amendments include adding a new provision concerning structural remedies and clear authority to impose fines when mergers are not notified correctly within the time limits. The English translation of the Competition Act 2005 available on the Competition Authority's website has not been updated to reflect these changes. It will eventually be updated, though at the time of writing a precise date for this was not known.
Icelandic merger rules are based on European Community (“EC”) merger rules. The Competition Authority's standard work method is therefore to seek guidance from EC and European practice when resolving specific issues and to follow a similar line unless some Icelandic rule or a specific local situation leads to a different conclusion.