Competition Authority investigates Ölgerðin over possible market abuse

Iceland’s Competition Authority is investigating whether drinks company Ölgerðin holds a dominant position in the beverage market and has abused it, mbl.is reports.

The authority said it searched the offices of Bera and its subsidiary Ölgerðin to collect and preserve material that could be relevant to the investigation. The search was carried out under a ruling by the Reykjavík District Court and the authority’s powers under Section 20 of the Competition Act.

The authority stressed that the search does not mean it has concluded that a breach of competition law occurred. It said it would not provide further information about the investigation for now.

The authority was assisted by staff from the Office of the Special Prosecutor. mbl.is said it had tried to contact the authority’s director general and managers at Bera and Ölgerðin, without success.

The authority has previously examined Ölgerðin’s market position. A recent report by Innherji said the authority saw strong indications that the company held a dominant position in sales of wine and spirits to restaurants and other large customers.

Competitors have also raised concerns that Ölgerðin’s acquisitions of Gæðabakstur and Kjarnavörur could strengthen its position, including through combined sales of food and drinks. It is not clear whether those concerns are connected to the current investigation.