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Main challenges |
Most important results |
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GROCERIES, PRIMARY INDUSTRIES AND CONSUMER COMMODITIES
Head of Section
Magnus Gabrielsen |
The grocery market is extremely concentrated. Norwegian consumers have access to around 20 different chains of retail stores, but all of these are associated with one of the four national chain groups, i.e. Norgesgruppen, Coop, Ica or Rema 1000.
Concentration in retail chains has increased during the past few years. It is difficult to enter the retail chain market.
For many important products, there is also a high concentration of suppliers. The dairy market is one example of this.
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Section operations during 2009:
- monitored the agreements entered into by the grocery chains with leading market suppliers and started analysing the competitive situation in a selected product market.
- notified the grocery chains about extension of their obligation to report annual agreements with leading market suppliers up until 2015.
- intervened against the merger between Validus AS and Sunkost ASA.
- continued to monitor gross margins in the dairy sector in order to prevent price activities that are detrimental to competition.
- advised the County Governor of Hedmark about taking competition into consideration in connection with the assessment of dispensation from the Shopping Centre Regulations.
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FINANCE AND SERVICES
Head of Section
Eivind Stage |
Customers in the finance markets, which comprise banks, savings and insurance, seldom switch providers. Many customers find it difficult to become informed about this market. During the financial crisis it has become even harder to switch banks, a development which makes it particularly important for competition to work.
The payment transfer markets offer special challenges, particularly for international payment cards.
In the public service pensions market the municipalities and other public bodies rarely make use of competitive tendering. This limits competition and makes it difficult for new providers to become established. |
Section operations during 2009:
- monitored the payment card markets and highlighted key competition problems in these markets. The international card companies have altered their agreements in a way that makes it easier to compete. Consultative statements on competition considerations have been followed up with the introduction of new rules on payment transfers.
- highlighted the fact that public service pensions are, in practice, purchased for indefinite periods and without advertisement according to the procurement regulations. Has asked for clarification as to whether such pension agreements are covered by the regulations.
Other important results:
- New rules enable customers to change banks using BankID, without having to visit the bank personally. The Finance Portal also has its own service for switching banks on its website.
- The Competition Authority's proposal to open online portals for private residential property advertisements was adopted. These regulations came into force on 1 January 2010.
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IT, TELECOMMUNICATIONS, MEDIA AND POST
Head of Section
Henrik Lande |
Monitoring the competitive situation in the broadband markets, including problems associated with broadband and TV connections.
Monitoring markets in the telecoms sector, including markets in which the Norwegian Post and Telecommunications Authority's (PT's) ex-ante regulations are being wound up, and focussing in particular on breaches of Section 11 of the Competition Act and the links between broadband capacity and traditional telephone services.
Monitoring international developments in the ICT markets.
Monitoring developments relating to the Net Book Agreement. |
Section operations during 2009:
- published a report about the broadcasting markets, expressed its opinion in a hearing about the provision obligations of general broadcasters, provided a statement about the need for individual station choices, provided a statement about competition in the digital terrestrial network, and participated in a working group on freedom of choice and diversity for TV viewers.
- cooperated with the PT about the latter's regulation of the market for access to and call origination in public mobile communications networks.
- commissioned a report about public authorities that make purchases in the software markets and followed international developments in these markets.
- assessed deregulation of the postal markets, including several consultative statements.
- assessed a report on developments in the book market and recommended winding up the fixed price system in the Net Book Agreement.
- rejected a claim for a compulsory licence submitted by Pharmaq AS.
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ENERGY, INDUSTRIES, CONSTRUCTION AND BUILDING
Head of Section
Ingunn Bruvik |
Ownership of energy production in Norway is highly concentrated around Statkraft, and many energy producers are intertwined in a network of ownership relationships. In addition, bottlenecks in the transmission network have resulted in reduced competition in some areas. The Competition Authority is also concerned that competition among those involved in the market would not occur on equal terms, since many monopoly owners of energy networks are integrated energy companies that also produce and sell energy to end users. Competition in the end user market could be strengthened by more price-conscious and active consumers.
Risk of illegal price cooperation and collusive tendering: Many businesses involved in the building and construction trade say that they are aware that illegal price cooperation takes place between parties operating in their trade. Many consumers experience problems with the builders' market. |
Section operations during 2009:
- engaged in continuous monitoring of the wholesale energy market in cooperation with the NVE (the Norwegian Water Resources and Energy Directorate) as part of its work designed to detect any abuse of market power in the energy market. In 2009 the Competition Authority undertook a closer assessment of several types of monitoring tools.
- thoroughly assessed several mergers in the energy market, but none of these warranted intervention.
- issued several consultative statements, including one about amendments to the Industrial Licences Act/rental scheme and one about advanced measuring and control systems.
- maintained the energy prices list and commenced work to make some changes in functionality.
- reinforced focus on the building and construction markets through own projects.
- made a decision about fines totalling NOK 7 million for two parties involved in illegal cooperation in tendering for bridge improvements in Steinkjer.
- participated in a working committee on building services, chaired by the Norwegian Consumer Council.
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TRANSPORT, HEALTH AND PHARMACEUTICAL INDUSTRY
Head of Section
Karin Stakkestad Laastad |
A greater degree of transparency in the taxi market would help to increase competition and make it easier for consumers to become informed about the purchase of services. The Competition Authority has drawn up proposals for new regulations relating to fare calculations and maximum prices for taxi transport which will represent an important contribution towards this work.
Competition in the aviation market is a priority area.
There may be competition-related challenges in the market for private health services which are receiving public funding, and this could affect the quality and efficiency of the health services. |
Section operations during 2009:
- submitted comments to the Ministry of Health and Care Services about the scheme for public operating subsidies and refunds for physiotherapists.
- drew up and circulated consultative documents containing new draft regulations relating to fare calculations and maximum prices for taxi transport .
- fined Taxi Midt-Norge for breaching the prohibition of competition-restricting cooperation and ordered the company to stop such activities.
- submitted comments to the Municipality of Oslo about the competition-restricting effects of a decision adopted by the City Council in respect of the taxi industry.
- fined the Norwegian Coach Owners' Association for breaching the prohibition of competition-restricting cooperation and ordered the company to stop such activities.
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CARTELS AND INVESTIGATION
Acting Head of Section
Erling Espeskog |
Top priority placed on serious breaches of the prohibition of price cooperation and collusive tendering.
Knowledge about the leniency programme is to be improved.
The work that has been commenced in the building and construction market is to be continued with parties in the trade, as well as public purchasers. |
Section operations during 2009:
- secured evidence in two cases at seven different locations.
- held several meetings with public purchasers, focusing in particular on the detection of cartel activities. A checklist has been drawn up for use by purchasers, with a view to preventing collusive tendering and for making it easier to detect such cooperation in a purchasing situation.
- presented contributions at several seminars where the topics covered included collusive tendering and the leniency programme.
- continued internal training in respect of securing and analysing electronic evidence.
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