Antitrust Act (Switzerland)

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Basic data
Title: Federal Law on Cartels and Other Restraints of Competition
Short title: Antitrust Act
Abbreviation: KG
Type: Federal law
Scope: Switzerland
Legal matter: Antitrust law
Systematic
legal collection (SR) :		 251
Original version from: October 6, 1995
Entry into force on: February 1, 1996 / July 1, 1996
Last change by: AS 2006 2197 (PDF; 686 kB)
Effective date of the
last change:		 January 1, 2007
Please note the note on the applicable legal version.

The Federal Act on Cartels and Other Restraints of Competition of October 6, 1995 (Cartel Act, KG, SR 251), together with the associated ordinances, form the source of Swiss antitrust law . The aim of the law is to prevent the economically and socially harmful effects of cartels and other restrictions on competition and thus to promote competition in the interests of a free market economy .

Central provisions

The law provides that

Agreements and behavior by dominant companies that have been declared inadmissible can exceptionally be permitted by the Federal Council out of predominant public interest. The same applies to prohibited business combinations.

In the case of certain inadmissible restraints of competition, sanctions (fines) can be imposed . This concerns inadmissible horizontal volume, price and area cartels, vertical agreements on minimum prices, fixed prices and area assignments as well as abuses of dominant positions. The amount of the sanction can be up to 10 percent of the turnover in Switzerland during the last three financial years. The law provides for a bonus scheme .

history

Antitrust Act 1985

In the Antitrust Act of December 20, 1985, the balance method was decisive for the antitrust assessment. This method obliged the authority applying the law to take into account all positive and negative effects of a restriction of competition on the economy and society. There was no separation of competitive and non-competitive aspects. The 1985 Antitrust Act did not provide for any way to prohibit a business combination.

The applying authority was the Cartel Commission . The latter carried out the investigation procedures, but could not issue any orders , only recommendations to the companies concerned. If the companies rejected these recommendations, the Federal Department of Economic Affairs could issue an order. For procedural reasons, the entire procedure of the Cartel Commission had to be repeated before a corresponding order was issued .

Antitrust Act 1995

At the beginning of the 1990s, a discussion arose about improving the economic framework conditions in Switzerland. In 1993 the Federal Council presented a program for the renewal of the market economy. Among other things, this envisaged the revision of the cartel law, the creation of a federal law on technical barriers to trade and an internal market law .

The Federal Act on Cartels and Other Restraints of Competition came into force on February 1, 1996 (Articles 18-25) and July 1, 1996 (other provisions). The main changes compared to the Cartel Act 1985 were:

  • Abolition of the Salod method: In antitrust proceedings, only the effects on competition and economic efficiency are examined. Other effects are taken into account in the context of an application for exceptional approval by the Federal Council.
  • New government and process structure: The as new competition authority created Competition Commission was given the opportunity to issue orders. However, except in the case of violations of the reporting obligation for company mergers, sanctions could only be imposed if a company violated an order of the Competition Commission.
  • Introduction of merger control.

Revision 2004

At the beginning of the new millennium, the cartel law was revised. These came into force on April 1, 2004. The main changes concerned two points. Firstly, in certain cases of antitrust violations, the possibility was created to impose sanctions without violating an order (direct sanctions). Second, vertical competition agreements are mentioned which are presumed to eliminate competition and are therefore inadmissible.

enforcement

The Competition Commission is responsible for the application of the Cartel Act. Appeals against rulings by the Competition Commission can be lodged with the Federal Administrative Court and then with the Federal Supreme Court . The Administrative Procedure Act (SR 172.021) generally applies to proceedings by the Competition Commission .

Civil courts can also be brought before antitrust lawsuits . If a civil court has to decide on the admissibility of a matter under antitrust law, the competition commission prepares an expert opinion . The civil courts are responsible for claims for damages under competition law.

swell

  • Message on a federal law on cartels and other restraints of competition (Cartel Act, KG) of 23 November 1994. Bundesblatt 1995, p. 468 ff.
  • Message on the amendment to the Cartel Act of 7 November 2001. Bundesblatt 2002, pp. 2022 ff.

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