The financial crisis and competition policy
The Competition Authority's Letter of Allocation specifies that the Authority should assess the way in which the financial crisis affects the targeting of competition policy. The Authority should adapt its strategy, allocation of resources and specialist priorities on the basis of such an assessment.
The competition authorities in Norway, Sweden, Denmark, Finland, Greenland and Iceland undertook a joint assessment of how the current and previous financial crises have affected competition policy and the lessons that can be drawn from them. This work, carried out under the leadership of the Competition Authority, was presented in a report entitled Competition Policy and Financial Crisis – Lessons Learned and the Way Forward. This report contains advice and recommendations about the enforcement and targeting of competition policy.
The report emphasises the importance of having firm competition policy and strict enforcement of competition rules, even in times of crisis.
It was published on Thursday 10 September at a press conference held in Reykjavik where representatives of the competition authorities of the Nordic countries met to attend their annual cooperation meeting.
Guidelines for preparing economic analyses
In connection with dealing with cases subject to the Competition Act, the Competition Authority received a large and increasing number of economic analyses based on empirical studies and economic modelling. In order to facilitate placing weight on such analyses in its assessments, the Authority has drawn up Guidelines for Preparing Economic Analyses presented to the Authority. These Guidelines are purely for guidance purposes and have no binding effect on the Competition Authority's administrative procedures.
Best Practices on the Conduct of Merger Control Proceedings
The Competition Authority has drawn up Best Practices for the Conduct of Merger Control Proceedings, which have also been translated into English. The purpose of these Best Practices is to offer a better understanding of the way in which the Competition Authority conducts merger control proceedings pursuant to Chapter 4 of the Competition Act. They are intended to help the parties involved obtain the best possible knowledge about the process in advance, and to ensure the best possible cooperation during the administrative proceedings in order to achieve a focussed and efficient process. They are based on the Authority's experience in conducting merger control proceedings.
Expertise relating to quantitative analyses
The Competition Authority has been working systematically to develop its expertise on quantitative analyses linked in particular to market definition. In 2009 two projects were prioritized. One project relates to the use of questionnaires to obtain information for use in, for example, market definition. Since the Authority has different deadlines for different cases it is important to find methods that can be concluded by the Authority's deadlines. This project was aimed at finding solutions, and it considered other countries’ experience. The other project concerned the fuel market. This project led to the Authority developing its expertise in obtaining and processing large quantities of data for use in econometric studies. It also led to the development of expertise in the use of geographical information systems and connecting them to commercial data, e.g. price information.
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Internet portals open for private residences from 1 January
Internet portals such as Finn.no have previously allowed only professionals to advertise private residences. In response to a proposal made by the Competition Authority, new regulations were adopted in September 2009 which require Internet portals to provide access to anyone wishing to advertise residential properties under non-discriminatory conditions. These regulations came into force on 1 January 2010.
With effect from the beginning of the year, Internet portals are thus required to allow access to anyone wishing to advertise residential properties on the Internet, i.e. private individuals can now advertise properties on the residential pages of such portals.
It has always been legal to sell properties without using an estate agent, but vendors have been obliged to use an estate agent or lawyer when wishing to place an advertisement on an Internet portal. The new regulations will enable people to have a real choice about whether or not they wish to undertake some of the sales work independently. The new rules will result in increased competition for estate agents and lawyers and a greater degree of freedom for consumers. This could lead to lower costs when selling residential properties, something which will benefit both purchasers and vendors.
Compulsory licence rejected
The Competition Authority rejected a request from Pharmaq AS for a compulsory licence. A compulsory licence is a licence issued by a public authority permitting the exploitation of patented inventions without the consent of the patent holder. Pharmaq had asked the Competition Authority to grant the company a licence to exploit a patent held by Intervet International B.V. Intervet owns patents for the production and sale of i.a. a vaccine for Pancreas Disease (PD) which affects farmed fish. Pharmaq argued that they had developed a better vaccine than the existing one and that Intervet had not managed to supply adequate quantities of vaccine to cover the demand of the market.
Section 47 of the Norwegian Patent Act allows the authorities to grant compulsory licences if such is in the interests of the public. The current regulations are enforced by the Competition Authority.
A compulsory licence represents a dramatic encroachment of the rights of the patent holder, and intervention in respect of such is governed by strict terms and conditions. After undertaking an overall assessment the Competition Authority decided that the conditions for granting a compulsory licence were not fulfilled in this case. Among other things the Authority found no documentary evidence to suggest that the supply problems and quality differences were as extensive as claimed by Pharmaq. An appeal against the Competition Authority's decision has been submitted to the Norwegian Ministry of Government Administration and Reform.