Hörður Arnarson challenges competition authority’s impartiality

Outgoing Landsvirkjun chief executive Hörður Arnarson has sharply criticised Iceland’s Competition Authority and questioned its impartiality in an opinion article published in Morgunblaðið, mbl.is reports.

The article follows a decision by the Competition Appeals Committee to overturn a 1.4 billion króna fine imposed on Landsvirkjun, a power company. The case concerned electricity the company sold to Landsnet to cover transmission losses from 2017 to 2021. The authority considered the price too low, while Arnarson says Landsvirkjun acted in the public interest to help ensure the security of the electricity system.

Arnarson says the appeals committee identified serious flaws in the authority’s investigation. He says it did not define the relevant markets correctly, fully examine the effects of the alleged price squeeze or handle evidence properly. In his words, “nothing was left standing” in the authority’s case.

He also criticises authority staff for publicly expressing negative views about Landsvirkjun while the investigation was under way. He says the authority’s director accused company employees of deliberately breaking the law without grounds. Landsvirkjun contacted the Parliamentary Ombudsman earlier this year over the case.

Arnarson writes that the Competition Authority investigates alleged violations, presents its preliminary assessment and ultimately decides whether there has been a breach and what penalties to impose. “It investigates, prosecutes and judges,” he writes, arguing that the legal framework for competition oversight should be reconsidered.

The full article appears on page 16 of Friday’s Morgunblaðið.