The Competition Authority considers imposing high fines on Verisure AS and Sector Alarm AS

The Norwegian Competition Authority has today warned Verisure AS and Sector Alarm AS in a Statement of Objections that it considers imposing fines of 784 million NOK on Verisure and 424.8 million NOK on Sector Alarm for collusion in the market for alarm services to residential customers.

It is the Competition Authorities’ preliminary assessment that Verisure AS and Sector Alarm AS, the largest providers of residential alarm services in Norway, have engaged in an anticompetitive concerted practice between 2011 and 2017. According to this concerted practice, the two competitors were not to sell residential alarm services to each other’s customers via home selling.

Very serious
A high share of Norwegian households have alarm systems installed in their homes. The number of providers of residential alarm services is limited.

– This is a case of great importance for customers of these two companies in Norway, as they may have paid too much for their residential alarm services. The fact that market sharing is a very serious competition law offense is reflected in the fines that we now consider imposing, says General Director Lars Sørgard.

Extensive investigation
The Competition Authority carried out unannounced inspections at the premises of the two companies concerned on 20 June 2017.

– The Authority has among other things reviewed and analysed an extensive amount of e-mail exchanges and other documentation. In addition we have conducted several interviews with employees of the two companies. It is our preliminary view that the companies instead of competing to attract as many customers as possible, have shared customers in the market for residential alarm services between themselves, says Director Hanne Dahl Amundsen.

The Authority now considers imposing fines amounting to 784 million NOK in the case of Verisure and 424.8 million NOK in the case of Sector Alarm. The difference in the amount of the fines is due to a difference in the turnover of the two companies.

Preliminary assessment
The Competition Authority wishes to emphasise that the findings in the Statement of Objections are preliminary and do not prejudge the outcome of the investigation.
– It is a Statement of Objections that has been presented to the parties at this stage. They will now have the opportunity to submit their comments to the Authority’s objections. Any such comments will be carefully assessed by the Authority, says Hanne Dahl Amundsen.

Verisure AS and Sector Alarm AS have been invited to submit their comments on the Statement of Objections by 2 September 2019.