Ministry overturns licensing conditions imposed on Smáríkið

Iceland’s Ministry of Industries has ruled in favour of online alcohol retailer Smáríkið, overturning conditions imposed on its operating licence by a health inspectorate serving five municipalities, mbl.is reported.

The ministry said there was no legal basis for the requirements and that they conflicted with the EEA Agreement’s provisions on the free movement of services and trade. The case concerns Smáríkið’s collection points in Bæjarlind, Kópavogur, and Miðhraun, Hafnarfjörður.

The inspectorate had required the Dutch company behind Smáríkið’s online alcohol shop to obtain a separate operating licence in Iceland. Smáríkið argued that a licence held by the Icelandic company handling distribution and customer service was sufficient. The ministry accepted the company’s position, according to Smáríkið’s statement.

The ministry also criticised what it called an unreasonable delay in the inspectorate’s handling of the case and said public authorities must act within the powers granted to them by law.

Vilhjálmur welcomed the ruling, calling it important for businesses operating under the EEA Agreement. He said it confirmed that regulators cannot impose burdensome requirements without legal authority and must process cases within a reasonable time.

Smáríkið has separately been involved in a dispute over online alcohol sales. Vilhjálmur was convicted by Reykjanes District Court in April for selling a three-litre bag of white wine and was fined 100,000 krónur. The court found that the companies behind Smáríkið had structured their sales to circumvent ÁTVR’s exclusive right to retail alcohol. The conviction has been appealed to the Court of Appeal.

The ministry’s ruling concerns licensing conditions for Smáríkið’s collection points. It does not address whether the company’s alcohol sales breach alcohol laws.