Competition Law at Switzerland
Certainly! Here’s a detailed overview of Competition Law in Switzerland:
Competition Law in Switzerland
1. Legal Framework
The primary law governing competition in Switzerland is the Federal Act on Cartels and Other Restraints of Competition (Cartel Act), which came into effect on January 1, 1996.
The Cartel Act prohibits anti-competitive agreements, abuse of dominant position, and regulates mergers that could harm competition.
2. Regulatory Authority
The Competition Commission (COMCO) is the Swiss federal competition authority responsible for enforcement.
COMCO investigates cases, reviews mergers, and issues decisions on competition matters.
The Swiss Federal Administrative Court hears appeals against COMCO’s decisions.
3. Key Provisions
Anti-competitive agreements
Prohibits agreements, decisions, or concerted practices that restrict competition, such as:
Price fixing
Market sharing
Bid rigging
Some agreements can be exempted if they improve production or distribution or promote technical or economic progress.
Abuse of dominant position
Prohibits firms with significant market power from abusing their position.
Examples include predatory pricing, refusal to supply, and unfair trading conditions.
Merger control
Requires prior notification for mergers and acquisitions exceeding certain turnover thresholds.
COMCO reviews to ensure mergers do not substantially impede effective competition.
Mergers that are harmful can be prohibited or approved with conditions.
4. Sanctions and Remedies
COMCO can impose fines up to 10% of the turnover generated in Switzerland by the infringing company.
It can order the cessation of illegal conduct and impose structural or behavioral remedies.
Criminal sanctions are possible for serious cartel offenses, with fines and imprisonment.
5. Additional Features
Swiss competition law aligns closely with EU competition rules but maintains independence.
There is cooperation and information exchange with EU competition authorities and international bodies.
The law encourages leniency programs and whistleblower protection to uncover cartels.
6. Recent Trends
COMCO actively enforces against cartels, abuses of dominance, and scrutinizes mergers, especially in telecoms, pharmaceuticals, and construction.
Swiss courts have developed a significant body of case law interpreting the Cartel Act.
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