SWITZERLAND Law and Practice Contributed by: Philippe Nordmann, Marion Bähler, Dario Glauser, Christian Hagen and Samuel Lieberherr, Walder Wyss Ltd
tors such as watches and pharmaceuticals – the Swiss government remains committed to a rules-based global trade system and continues to pursue diplomatic solutions to safeguard its economic interests.
nary assessment of a notified transaction (Phase I). Then, the concentration may be implemented, unless COMCO opens a Phase II investigation. The Phase II investigation must be completed within an additional four months. Before Phase I and, if relevant, Phase II is completed, concen - trations must not be implemented. COMCO assesses whether the notified concen - tration leads to the creation or strengthening of a dominant market position likely to eliminate effective competition. The threshold for inter - vention seems comparatively rather high. Also, COMCO can only clear concentrations under certain conditions and obligations. 6.3 Cartels Agreements that significantly restrict competi - tion in a market for specific goods or services and are not justified on the grounds of econom - ic efficiency, and all agreements that eliminate effective competition are unlawful. Agreements and concerted practices between competitors (horizontal agreements) related to prices or elements thereof (such as rebates), quantities or the allocation of territories or cus - tomers are presumed to eliminate effective com - petition (so-called hardcore restrictions). Such hardcore restrictions can hardly ever be justified on the grounds of economic efficiency. Agreements between undertakings at different levels of the production and distribution chain (vertical agreements) regarding fixed or minimum prices are presumed to eliminate effective com - petition and thus qualify as hardcore restrictions, irrespective of whether the agreement has actual effects on the relevant market. The same is true for agreements on absolute territorial protection. Absolute territorial protection clauses prohibit
6. Competition Law 6.1 Merger Control Notification
Mergers and acquisitions must be notified if cer - tain turnover thresholds are reached. Planned concentrations of undertakings such as merg - ers, acquisitions of sole or joint control over a previously independent undertaking, as well as the setting up of full-function joint ventures (con - centrations) must be notified to the Competition Commission (COMCO) before their implemen - tation if the following turnover thresholds are reached in the financial year preceding the con - centration: • the undertakings concerned together report - ed a turnover of at least CHF2 billion, or a turnover in Switzerland of at least CHF500 million; and • at least two of the undertakings concerned each reported a turnover in Switzerland of at least CHF100 million. Regardless of whether the turnover thresholds described in the foregoing are reached, a con - centration must be notified if one of the under - takings concerned has been held (in a binding decision) to be dominant in a market in Swit - zerland, and the concentration concerns either the same market or an adjacent, upstream or downstream market. 6.2 Merger Control Procedure The merger control procedure can include two phases: COMCO has one month for a prelimi -
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