Cartels
Competition Commission closes investigation into four Bernese construction companies
On 6 December 2007 the Competition Commission put an end to its long-running investigation into the practices of four Bernese construction operations which are renovating the Swiss National Library by discontinuing its proceedings without any finding of violation.
On 17 December 2001 the Competition Commission had in fact concluded that Betosan AG, Isotech AG (now Hela AG), Renesco AG (now Arkosol AG) and Weiss + Appetito AG had agreed upon prices in their tender offers. The Competition Commission issued a decision forbidding such practices in the future. It did not impose fines, since at the time its powers to fine were confined to situations where a company contravened a decision of the Competition Commission.
These companies appealed against this decision to the Appeal Commission (as it then was) which on 22 November 2005 partially annulled the Competition Commission’s decision. The Appeal Commission sent the case back to the Competition Commission with the direction that evidence that the employer was in possession of a detailed and reliable estimate of costs. The Appeal Commission took the view that only such evidence would show that the employer had been placed in a position where there were clear price differences making that a central if not the central criterion of selection.
The Competition Commission determined that such evidence was not present although there existed other indications of price-fixing.
Competition Commission prohibits Ticino road asphalting cartel
On 19 November 2007 the Competition Commission issued a decision formally prohibiting a market-sharing cartel amongst 17 companies active in road asphalting in the Swiss canton of Ticino.
In April 2005 the Competition Commission initiated an investigation into the practices of both asphalt producers and road asphalting construction companies. The Competition Commission’s investigation had shown that 17 of the 18 companies active in the road asphalting market had from 1999 until the end of 2004 participated in a system to guarantee each of them a certain percentage of the market by sharing out public tenders and private work. These companies would meet each week to decide on the apportionment of work, and would discuss prices. The cartel was discontinued prior to the grace period under amendments to the Swiss Competition Act (i.e. prior to 31 March 2005). Thus no fines were imposed.
In its decision the Competition Commission stated that this cartel was a hardcore violation of Swiss competition law, that it had caused injury to customers, both public and private, and it had resulted in unnecessary burden upon the taxpayer. Because of this cartel, note the Commission, an inefficient market structure had been maintained. The Competition Commission declared that had it been possible to impose fines, they would have been in the total amount of about CHF 30 million, with individual companies being fined up to an amount of about CHF3 million.
Competition Commission launches enquiry into practices in the electrical equipment industry
On 31 January 2008 the Competition Commission launched an enquiry into suspected anti-competitive practices in the electrical equipment industry in an unnamed major Swiss city by dawn raiding the offices of the principal market participants.
The enquiry covers a number of companies which furnish electrical equipment in construction projects, as well as several industry associations in this sector.
The Competition Commission suspects that price coordination has been engaged in and a sharing out of construction projects subjected to tender.
Competition Commission initiates enquiry in professional cutting tools sector
On 7 January 2008 the Competition Commission initiated an enquiry into the practices of two companies active in the professional cutting tools sector, the manufacturer Felco SA and the retailer Landi Suisse SA.
The subject of the enquiry is an agreement imposing minimum resale prices for certain tools manufactured by Felco.
Felco, a family-owned business from the Swiss canton of Neuchâtel, is the market leader in shears and clippers for professional use. Landi is a retailer active in the agricultural and non-food sectors.
Tavernier Tschanz – February 2008
For more information, please contact Silvio Venturi (venturi@taverniertschanz.com ) or Phillip Landolt (landolt@taverniertschanz.com ), tel. +41 (0) 22 704 3700.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.
