The Council of States today resolved the last outstanding difference regarding the partial revision of the Cartel Act. It has adopted the balanced compromise proposal put forward by the National Council. SwissHoldings expressly welcomes this decision. Going forward, the Competition Commission must base its assessments consistently on the actual impact of a case. This strengthens legal certainty and creates the basis for dynamic and strong competition. The matter will now go to a final vote. As we look ahead to the coming year, the institutional reform is now taking center stage..
The current practice of the competition authority has been causing major problems for the economy for years. Individual cases are no longer given sufficient consideration, with the result that numerous harmless collaborations, such as quality or standardisation projects that would promote competition, cannot be implemented. The Cartel Act must fulfil its important function – namely to prevent the economically or socially harmful effects of cartels and other restrictions on competition. However, it should not go beyond that. Today’s decision marks an important milestone in the urgently needed modernisation process.
Adjustments in the interests of the economy
In the last outstanding difference concerning the examination of individual cases in relation to competition agreements (Art. 5 LCart), the Council of States followed the position of the National Council. According to this, individual cases and the actual impact of the behaviour under investigation must be considered again. Both chambers had already approved the case-by-case assessment of the conduct of market-dominant or market-powerful companies (Art. 7 LCart). If accepted in the final votes, Switzerland will have coherent new legislation that addresses the economy’s core concerns. The partial revision also includes various modernisations and harmonisation with international standards, in particular through the transition to the SIEC test. SwissHoldings welcomes the decision of the Council of States and emphasises the importance of a modernised Cartel Act for legal certainty, competitiveness and innovation in Switzerland as a business location.
After the reform is before the reform
With the partial revision now finalised, an important milestone has been reached, but the institutional reform of the competition authority is still pending. Urgent adjustments are needed in the areas of the lack of separation between the investigating and decision-making bodies, the lengthy proceedings and the lack of specialisation of the appeals authority. The consultation draft has not yet achieved this. An institutional separation of the investigating and decision-making authorities is imperative. SwissHoldings will continue to campaign resolutely for Switzerland to have a modernised, fair, efficient and constitutional competition commission.
