In Switzerland, cartel law is a strange creature that should be strengthened rather than ironed out

In Switzerland, cartel law is a strange creature that should be strengthened rather than ironed out
In Switzerland, cartel law is a strange creature that should be strengthened rather than ironed out

This concentration, and this is where the association draws its legitimacy, does not only make farmers and small millers happy. Their income is dwindling and they are gradually disappearing. It’s the law of the market, one might reply. Moreover, the industry contests each line of the study which establishes the Swiss Fair Markets approach, arguing in particular that the market works.

Competitive hell

But the fact is that, in this country, competition is lacking in many areas, which fuels the suspicion of margins that are too high, such as The weather explained it in the case of dairy products, among others. Comco would therefore be well advised to seriously investigate the allegations communicated to it, if only to refute them if necessary.

According to the Historical Dictionary of Switzerland, the Federal Constitution is the only one in the world that protects cartels. In addition, the limited size of the country contributes to making it a competitive hell. Many parts of the economy are subject to a small number of actors for whom it is easy to agree, tacitly or explicitly, on the price, quantity or characteristics of a product.

One might expect, in these circumstances, that the political authorities would work to strengthen Comco. The opposite is happening. Last year, the Federal Council submitted to parliament a draft revision weakening this body which already did not terrorize many people. If the new law is accepted, a cartel agreement would become legal, unless it is demonstrated that the product is of particular importance. Clearly, we are relaxing the legal framework while strengthening the requirements applicable to the institution supposed to enforce it. Enough to make cartel law reign.

#Swiss

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