An Icelandic drinks importer could win compensation from the Iceland government, after the European Free Trade Area Court found that Reykjavik had broken the rules of the European Economic Area, (of which Iceland is a part), by maintaining its alcohol importation monopoly until December 1995.

Under the EEA Agreement, Iceland was supposed to have liberalised its import regime by January 1994, leading importer Karl Karlsson to claim that he suffered damages by being illegally prevented from importing brands for which he was an agent into Iceland in 1994 and 1995.

EFTA judges ruled that it was "a sufficiently serious breach" of the law for "state liability" to apply.