Ah gross, that's pretty messed up. I guess I have s romantic view of Iceland where they wouldn't let that cheesy kinda pricing to exist. Or especially that they'd fight your company. Insane.
Indeed. But there are also dual pricing schemes in datacenters. They don't want you to peer with RIX (Eeykjavík Internet Exchange) and charge those who do a higher price (hence forcing one hosting provider to change their routing.