The Icelandic government has released a policy on free and open source software. In short, the policy states that when buying software free and open source software should be considered on an equal footing with proprietary software, that software based on open standards shall be chosen, that lock-ins to specific vendors should be avoided (choosing free software is one means to achieve this), that bespoke or customized software shall be reusable (and free and open source software achieves this), and finally that students of Icelandic educational institutes shall have the opportunity to learn about and use free and open source software on a par with proprietary software.

This policy applies to all state institutions and organizations operated with public funds.