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State Aid

Iceland: ESA investigates alleged state aid to Gagnaveita Reykjavíkur

5.12.2019

PR(19)34 

EN | IS

ESA has opened a formal investigation into whether the telecom company Gagnaveita Reykjavíkur has received state aid.

The EFTA Surveillance Authority (ESA) has been looking into the matter after receiving a complaint from Síminn, a provider of wireless communications services in Iceland. The municipality-owned energy and utility company Orkuveita Reykjavíkur owns Gagnaveita Reykjavíkur and has financed and provided loans to the telecom company.

The complainant claims that this has led to an unfair advantage and is in breach of EEA State Aid rules. ESA will investigate whether State resources were used to give Gagnaveita Reykjavíkur an advantage not available to other market participants.

Once it has been cleared of any confidential information, today's decision will be published in ESA's state aid register, normally within a month.

Key facts:

  • Gagnaveita Reykjavíkur (GR) is an independent entity, established to separate competitive and non-competitive operations of Orkuveita Reykjavíkur (OR).
  • The Icelandic Post and Telecom Administration (PTA) monitors that income from activities enjoying special or exclusive rights does not give advantages to operations in the competitive sector of telecommunications.
  • Three decisions by the PTA found that arrangements between OR and GR violated this requirement. The PTA required OR to claw back the advantage in two of the cases. In none of the cases did the PTA require that GR pay interest on the advantage it received.
  • ESA will investigate whether additional repayments need to be made, to ensure that GR does not keep an undue advantage

For further information, please contact:

Gunnar Hörður Garðarsson
Communications Officer
mob. +32 490 57 63 38




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