Alcohol online stores are here to stay

Online alcohol retailers have become an established presence in Iceland, with approximately thirty now in operation. This reality stands in contrast to the current legislation, as a provincial court has ruled their sales model to be illegal. Benedikt S. Benediktsson, director of the Confederation of Icelandic Enterprise (SVT), believes it is peculiar that lawmakers are not acknowledging this fact.

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We have been of the opinion that changes must of course be made to the laws and bring them to a state where they reflect the reality of today, not the reality of 30 years ago.

Benedikt asserts that it is long overdue for changes to be made to Iceland's alcohol legislation. "We have been of the opinion that changes must of course be made to the laws and bring them to a state where they reflect the reality of today, not the reality of 30 years ago," he stated. He considers the current system for alcohol sales in Iceland to be a relic of the past and suggests that private entities should be allowed to manage sales within a clearly defined regulatory framework.

Despite the legal uncertainty surrounding alcohol sales, particularly in light of the aforementioned court ruling, the government has not specifically addressed the legislation. Benedikt finds this situation "very peculiar, especially considering that these online stores are operating here. This activity is here to stay and needs to be regulated in a way that there is consensus on how it looks," he said.

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This activity is here to stay and needs to be regulated in a way that there is consensus on how it looks.

For a long time, foreign online stores have been permitted to ship alcohol to Iceland. Benedikt finds it contradictory not to allow Icelandic entities to operate on the same basis. He also notes the difficulty in imposing restrictions on foreign online sales if the intention is to curb the current sales model. "The EEA agreement is supposed to ensure the free flow of goods across borders and free freight transport. That effectively ties the hands of the agreement's member states when it comes to blocking foreign stores from entering the country. Of course, it is long overdue for the legislator to pull themselves together and try to have a conversation about how people want this to look," the director urged.

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The EEA agreement is supposed to ensure the free flow of goods across borders and free freight transport. That effectively ties the hands of the agreement's member states when it comes to blocking foreign stores from entering the country.

Benedikt supports the idea of going beyond merely permitting online alcohol sales. He views the state-owned Vínbúðin's retail monopoly on alcohol as an anachronism. However, he believes that facilitating online alcohol sales would be a positive first step. "That would at least be some kind of first step if it had to be taken in slower steps to gain some experience with it and reduce fear and so on."

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Of course, it is long overdue for the legislator to pull themselves together and try to have a conversation about how people want this to look.