ARTICLE
19 November 2003

Swiss Competition Report - Reporting Period : July 03 – September 03

Switzerland Antitrust/Competition Law

This section reviews developments concerning the Federal Act of October 6, 1995 on Cartels and Other Restraints of Competition (the "Competition Act"), which is enforced by the Federal Competition Commission ("FCC"). Appeals against decisions of the FCC are heard by the Appeal Commission for Competition Matters (the "Appeal Commission").

ENFORCEMENT POLICY AND LEGISLATIVE DEVELOPMENTS

Therapeutic Products Act and Competition Act. The FCC issued on September 23, 2003, an opinion addressed to the price Supervisor (Surveillant des prix) in favour of the applicability of the Competition Act to the sale of therapeutic products to public hospitals. A preliminary investigation showed that, after the entry into force of the Therapeutic Products Act ("TPA"), pharmaceutical companies changed their prices and discounts practices towards public hospitals, either altogether excluding discounts or uniformly reducing them to a maximum of 20 %. According to the FCC, the TPA aims at preventing acts of corruption but does not generally prohibit discounts on therapeutic products or set a maximum limit thereto.

ADMINISTRATIVE AND JUDICIAL DECISIONS

Merger Control

  • Newspapers

On July 21st, 2003, the FCC temporarily authorised Le Temps SA to include in its daily newspaper Le Temps, the magazine TV8 published by Ringier, instead of its own TV supplement. This is an early step of a concentration plan by which Ringier would share the control of Le Temps SA with Edipresse. The FCC mainly considered the possibility for Le Temps SA, which is in a difficult financial situation, to make major savings.

On August 7, 2003, the FCC opened an in-depth investigation into Ringier's acquisition of the joint control over Le Temps SA, the company that publishes Le Temps. Ringier would share the control with Edipresse, which has a 50% holding in Le Temps SA. The preliminary investigation showed signs that Edipresse's dominant position on the daily newspaper market in the French-speaking part of Switzerland might be strengthen by the operation, because competition between Edipresse and Ringier might be lessened in neighbouring markets.

On September 11th, 2003, the FCC decided to investigate the acquisition by Berner Zeitung AG of the joint control over 20 Minuten. Tamedia AG and Berner Zeitung AG contemplated the acquisition of 20 Minuten through Express Zeitung AG, a company held by Tamedia AG. Berner Zeitung AG would first acquire joint control over Express Zeitung AG and then Express Zeitung AG would acquire exclusive control over 20 Minuten. The preliminary investigation showed signs that such joint control by Tamedia AG and Berner Zeitung AG might create or strengthen a dominant position on the local and regional advertisement market or the readers market in the Bern and Zurich areas.

On September 29th, 2003, the FCC opened an in-depth investigation of the entry of Espace Media Groupe into the capital of Der Bund Verlag AG. A preliminary investigation showed that this entry might create or strengthen a dominant position on the newspaper readers market, the regional advertisement market and the regional advertisement on radio or TV market in the Bern Mittleland and Oberland areas. Espace Media Groupe holds a strong position in these markets where Der Bund Verlag AG is also active. The operation might be justified on grounds of Der Bund Verlag AG's financial difficulties.

Anti-Competitive Practices

  • Private clinics. On August 18, 2003, the FCC opened an investigation against the members of the Association of private clinics of Geneva (APCG). In the Canton of Geneva, the APCG clinics and health insurances entered into an agreement on the charges for services provided to patients in private or semi-private divisions. The preliminary investigation showed that the application of the agreement by both parties might constitute an unlawful agreement within the meaning of the Competition Act.

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.

 

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