- with readers working within the Insurance industries
Switzerland's long-awaited revision of the Cartel Act is nearing the finish line. Both parliamentary chambers have now reached consensus on all elements of the reform package, including modernized merger control, stronger civil enforcement, a narrowed definition of hardcore price cartels, and, crucially, the (re)introduction of an effects-based assessment for hardcore agreements and for the abuse of a dominant market position or relative market power.
Introduction
After more than a year of debating, the Swiss Parliament has decided on a major revision of the Swiss Cartel Act (CartA), marking the most significant reform of Swiss competition law in over a decade.
Key points of the revision
Merger control reform:Switzerland will transition from the "dominance plus" test to the SIEC test (Significant Impediment to Effective Competition), aligning its merger control regime with EU standards. This will lower the threshold for intervention and likely increase the number of in-depth reviews by the Swiss Competition Commission (ComCo).
Strengthening of civil antitrust enforcement:The legal standing for private damages claims has been broadened to include all parties whose economic interests are affected by unlawful restrictions of competition, including consumers and public authorities.
Targeted definition of price cartels:Under the current CartA, not only price cartels but also other price coordination such as gross price agreements are qualified as hardcore violations and subject to fines. The revised CartA now narrows the definition of price cartels to minimum and fixed price agreements, as well as maximum price agreements on the demand side. This marks a significant shift away from a very broad interpretation that previously encompassed a wider range of price agreements.
(Re)introduction of effects-based assessment:The revised CartA will reinstate the effects-based approach for all types of restrictions of competition. Under this framework, ComCo must demonstrate on a case-by-case basis actual or likely anti-competitive effects through qualitative and quantitative analysis, rather than relying solely on the presumption that hardcore agreements significantly distort competition.
Likewise, ComCo must assess on a case-by-case basis in an overall assessment, taking into account empirical evidence and the specific circumstances on the market, whether an alleged abuse of a dominant market position or of relative market power amounts to unlawful behaviour.
Outlook
With the final point of divergence resolved, Parliament is set to hold its final vote on the revision package in mid-December 2025. The revised Cartel Act is expected to enter into force in 2027.
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