Icelandic Minister defends controversial agricultural law amendments amid monopoly concerns
The Icelandic Minister of Food, Bjarkey Olsen Gunnarsdóttir, has stated that there are currently no legal restrictions preventing the monopolization of the meat market. Despite criticism from her own ministry, she believes the procedure surrounding the recent amendments to agricultural laws has resolved any doubts regarding their legality.
The Skagfirðingar Cooperative has acquired nearly all shares of Kjarnafæði Norðlenska following controversial changes to agricultural laws this autumn. These amendments exempt meat market companies from competition laws, which has triggered widespread condemnation from various groups, including the Competition Authority and Consumer Association, who argue that the changes pave the way for reduced competition and possible monopolies, leading to higher prices for consumers.
The law amendments faced significant scrutiny during the legislative process, as the bill was altered without soliciting new opinions. Concerns have been raised about conflicts of interest since the chair of the parliamentary committee involved has financial ties to Kjarnafæði Norðlenska. The Ministry of Food has expressed that the changes go further than originally considered and have questioned their alignment with EEA agreements.
In response to the situation, Bjarkey has indicated that while conflicts of interest may arise, she did not suspect that the committee chair was acting in self-interest. She acknowledged that the new laws allow for one company to potentially buy out others, leading to a monopoly situation.
To protect consumer interests, Bjarkey has proposed the involvement of the labor union ASÍ in monitoring meat pricing. The Ministry is currently awaiting feedback from the EFTA Surveillance Authority regarding the law’s compatibility with EEA agreements. If deemed non-compliant, the laws may need to be revisited, potentially jeopardizing the Skagfirðingar Cooperative’s acquisition of Kjarnafæði Norðlenska.