Introduction
Introduction of the Concept of "
The revision of the Cartel Act ("
In contrast to the traditional determination of market dominance (see Art. 4 para. 2
In addition to the concept of "relative market power", a further type of abusive practice is added to Art. 7 para. 2 of the
Whether a contractual partner is dependent is likely to be assessed by the
- Brand Importance:
Due to the importance of the supplier's brand, the reseller is required to carry it in its product range. - Company Specific Dependence:
Company is depended as a result of aligning its business operations in a long-term contractual relationship. - Scarcity:
Dependency due to the sudden loss of supply options, without having alternatives. - Purchaser Relevance:
A supplier is dependent because of a lack of alternative purchasers.
Introduction of Geo-Blocking Ban
The revision of the Act against
However, it is important to mention that Art. 3a para. 2 of the UCA contains various exemptions (e.g. for financial services, public transport or gambling) and that the regulation does not establish an obligation to deliver to
Since the new prohibition is part of the UCA, civil courts and not the ComCo will be responsible for the enforcement.
Practical Consequences for Companies
The introduction of the concept of "relative market power" in Art. 7 of the
Companies shall check individually whether a particular contractual partner is dependent on them. This is particularly relevant prior to the conclusion of the business relationship. Under the new law, it is likely that medium-sized and smaller enterprises will also be increasingly confronted with Art. 7 of the
Direct penalties for an abuse of "relative market power" (ie. for a first offence) are not envisaged. However, in the event of a violation against a final decision prohibiting a certain abusive behaviour of a company with "relative market power", such company may be fined up to 10% of the turnover achieved in
Regarding the prohibition of geo-blocking, companies are required to ensure, that Swiss customers are not charged with higher prices. Infringements of this provision may result in civil proceedings.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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