The Norwegian competition authority, Konkurransetilsynet, has concluded an investigation into KLP's conduct in the public service pension market, determining that the company's actions may have weakened competition. KLP is now required to change its practices to foster a more competitive environment for municipalities.

Since 2022, the authority has been investigating whether KLP abused its dominant position by actively influencing municipalities to refrain from putting public service pensions out to tender. This behavior could have led to increased costs and reduced service quality for municipalities, according to competition director Mads Magnussen.

In response to the authority's concerns, KLP has proposed several remedial measures, including ceasing its influence over municipalities' tender processes and addressing the negative impacts of its previous practices. Public service pensions represent one of the largest purchases for municipalities, and increased competition could result in significant savings.

Effective tender competitions are essential for fostering competition in this market. The authority's decision is expected to encourage more municipalities to conduct tender competitions for public service pensions, making it easier for new competitors to enter the market and improve offerings for municipalities.

While KLP disagrees with the assertion of having abused its dominant position, it has nonetheless agreed to implement measures to alleviate the authority's concerns. The authority has made these measures binding and will monitor KLP's compliance moving forward, effectively concluding the investigation.