Switzerland: Published Federal Council communication on Cartel Act Revision

On May 24 2023, the Federal Council published its communication on the partial revision of the Cartel Act. A proposed change in the cartel law involves replacing the current qualified market dominance test with the SIEC test (Significant Impediment to Effective Competition). The SIEC test differs from the previous test in that it does not solely focus on cases of market dominance but allows for interventions, particularly in cases of unilateral (non-coordinated) effects that fall below the threshold for individual market dominance. As stated by the Federal Council, the rationale behind this change is that the existing control system does not adequately address both the negative and positive impacts of mergers and acquisitions and that markets are becoming increasingly digitalised, necessitating a more modern test. In particular, this change is aimed at ensuring that competition in markets is maintained and that mergers and acquisitions are assessed more comprehensively, considering their potential effects on competition, especially in the context of evolving digital markets.