Competition Law at Faroe Islands (Denmark)
Here’s an overview of Competition Law in the Faroe Islands:
Competition Law in the Faroe Islands
The Faroe Islands are a self-governing territory within the Kingdom of Denmark. They have their own legal system and competition rules, which are separate from Danish and EU competition law because the Faroe Islands are not part of the EU.
Key Features:
1. Legal Framework
Competition law in the Faroe Islands is governed by the Competition Act (Konkurrenceloven) enacted in 2007.
The Act aims to promote competition and prevent anti-competitive behavior in the Faroese market.
2. Competition Authority
The Competition Authority of the Faroe Islands (Konkurrencemyndugleikin) is responsible for enforcement.
The Authority investigates anti-competitive agreements, abuse of dominant position, and merger control.
3. Prohibited Practices
Cartels and anti-competitive agreements: Price fixing, market sharing, bid rigging.
Abuse of dominant position: Practices that restrict competition or exploit consumers.
Merger control: Transactions that may significantly reduce competition must be notified and approved.
4. Merger Control
Mergers and acquisitions that may substantially lessen competition in the Faroese market require approval.
Notification thresholds relate to turnover and market impact but are generally tailored to the small size of the Faroese market.
5. Sanctions
The Authority can impose fines and require behavioral or structural remedies.
Penalties are designed to deter anti-competitive behavior in a relatively small market.
6. Relationship with Danish and EU Law
The Faroe Islands are not part of the EU and are not subject to EU competition rules.
Danish competition law applies only within Denmark proper, not in the Faroe Islands.
However, businesses in the Faroe Islands trading with the EU or Denmark may be subject to EU or Danish rules in those jurisdictions.
Summary Table
| Aspect | Faroe Islands |
|---|---|
| Main Law | Competition Act (2007) |
| Competition Authority | Competition Authority of the Faroe Islands |
| Cartels | Prohibited and sanctioned |
| Abuse of Dominance | Prohibited |
| Merger Control | Required for significant transactions |
| Relation to EU Law | Not subject to EU competition rules |
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