NewsBanking sector under the spotlight as the Norwegian Competition Authority launches its first sector inquiry

Banking sector under the spotlight as the Norwegian Competition Authority launches its first sector inquiry

On 27 May 2026, the Norwegian Competition Authority announced that it was launching a sector inquiry into banking services. The inquiry will focus on the level of competition between banks, including in relation to conditions for deposits and residential mortgages. In its press release, the Authority emphasised the importance of ensuring effective competition in a market with such major implications for consumers, noting that even small differences in interest rates may amount to several thousand Norwegian kroner per year for an individual household.

The Authority's first use of its investigation powers

This is the first time the Authority has opened a sector inquiry, following the introduction of the new market investigation regime in Norway last year. A sector inquiry is a first step towards a full market investigation, where the purpose is to gather information about market conditions and assess whether there are features of the market that may significantly restrict competition. If the Authority considers that such concerns exist, it may proceed with a formal market investigation.

Following a market investigation, the Authority has the power to impose the structural or behavioural measures it considers necessary to eliminate or mitigate the risks it has identified. This makes the regime a potentially significant tool for intervention in markets where competition concerns arise, even where no competition law infringement by one or more companies has been identified.

The Authority has stated that it will now collect information from banks and other market participants with knowledge of the sector. According to the press release, a selection of 14 banks will be asked to provide information.

Not the first time the banking sector has been in the spotlight

This is not the first time the Authority has raised concerns about competition in the banking sector. The Authority has previously raised concerns about low customer mobility, barriers to entry and expansion, and market conditions that may facilitate coordination of interest rates in the banking sector. The new sector inquiry will allow the Authority to reassess the competitive dynamics in the market and determine whether a formal market investigation is warranted.

The choice of the banking sector for the first sector inquiry is also noteworthy in a broader context, as competition authorities in other jurisdictions have previously used equivalent or similar tools to examine competition in the banking industry. In the UK, for example, the Competition and Markets Authority conducted a retail banking market investigation which resulted in a package of remedies aimed at increasing customer engagement and making it easier for customers to compare the prices and service quality of competing providers.

Watch this space

Although it remains too early to say where this new inquiry will lead, the announcement is an important step for the Authority, showing it is willing to use the newest tool in its toolbox. Businesses should be following the process closely, as the case may provide important insight into how the Authority intends to use its new powers in practice.

For more on the market investigation tool itself, see our previous article on recent developments in Norwegian competition law from last year.