Concerns rise over Prís entry into Icelandic market without Competition Authority review

Concerns regarding the new grocery store Prís and its entry into the Icelandic market have not yet been addressed by the Competition Authority. The director of the authority stated that wholesalers often struggle to justify the significant discounts offered to the largest grocery chains compared to smaller retailers.

Páll Gunnar Pálsson, the director, discussed these issues in an interview, responding to remarks made by Gréta María Grétarsdóttir, the manager of Prís, which opened earlier this month. Gréta claimed that the largest grocery chains receive substantial discounts from wholesalers, making it more profitable for her business to purchase goods from competitors like Bónus or Krónan.

“There is a considerable price difference between wholesalers for larger retailers like Bónus and Hagkaup, compared to smaller entrants in the market. We have examined this and found that wholesalers need to substantiate these discrepancies, which they have struggled to do in certain cases,” noted Páll.

Gréta has also alleged that there is a market consensus to exclude new companies and that her team at Prís was advised not to “rock the boat.” Páll confirmed that such threats have not been reported to the Competition Authority, emphasizing the importance of maintaining an open market structure.

“Every business must have the opportunity to enter the market in a competitive environment. While we receive occasional tips and investigate them, we have not yet reviewed any claims related to this market entry,” he added.