Competing fairly - Sweden

Updated 11/2010

• European Union
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Legal requirements

Swedish competition rules are mainly contained in the Competition Act (Konkurrenslagen).         

• Competition Act

Important supplementary laws are the:

• Marketing Practices Act
• Public Procurement Act
• Ordinance on State Aid to Trade and Industry
• Transparency Act

Anti-competitive cooperation

Cartel agreements and abuse of a dominant position

 Chapter 2 of the Competition Act covers the two central prohibitions of preventing free competition:

• abuse of a dominant position in the market;
•  cooperation between companies to obstruct , restrict or distort competition (e.g. in cartels).

Small and medium-sized companies can cooperate as long as it does not lead to them controlling a significant share of the market.

• More on cartels
• More on the implications of a dominant position

Exception

 Cooperation between companies does not necessarily obstruct competition. For example, cooperation can contribute to improving production or distribution or to promoting technological or commercial progress. In such cases it may be subject to a special exception, such as a block exemption.

• More on possible exemptions from the prohibition

Other types of unfair competition

Free pricing applies to most markets in Sweden. It is not the task of the Swedish Competition Authority to set reasonable prices. However, it can intervene when pricing means that a company is abusing its dominant market position.

Every shop can set its own prices, but recommended retail prices (RRP) are very common and are followed by many shops. Manufacturers and suppliers can issue recommended or standard prices as guidance for retailers.

An infringement of the Competition Act occurs when separate companies agree or contract with each other to charge a certain price when selling to consumers. Suppliers may not force a retailer to maintain a certain price.

• More on prohibited agreements

If a company that refuses to supply a product or service has a dominant market position (such that it can act independently of customers and competitors), its refusal to supply may be prohibited by the Competition Act.

It is also prohibited to refuse to supply products or services to a company because it has made an agreement with a competitor, especially if this affects a significant share of the market.

Consumer protection

The Swedish Consumer Agency (Konsumentverket) is a government body tasked with safeguarding consumers' interests.

• Swedish Consumer Agency

Competition authority

The authority in Sweden which monitors competition issues is the Swedish Competition Authority (Konkurrensverket).

• Swedish Competition Authority

Strict provisions govern company mergers

• Mergers — Sweden

Administrative procedures

Filing a merger report

It is a good idea to contact the Swedish Competition Authority in advance before filing a report on a company merger. This is useful for both the acquisition partners and the Swedish Competition Authority.

• Advance contact

Companies which merge and gain a significant market share and turnover after the merger must in certain cases report the merger to the Swedish Competition Authority.

• Filing a merger report

Cartel notification

If a company is subjected to measures restricting competition or if there is any suspicion of cartels being formed, this can be reported on the Swedish Competition Authority website.

• Reporting cartel formation

Consequences of illicit cooperation

The Swedish Competition Authority can order a company to terminate a business activity if it considers that this obstructs competition.

If this is not done then the company must pay a fine. If the infringement is considered to be serious then the company may be liable to pay an administrative penalty (konkurrensskadeavgift). This may be up to 10% of annual turnover.

• More on calculating the administrative penalty for competition damage

Programmes

 Companies which admit that they have participated in an illicit cartel may be wholly or partly exempted from paying fines for the illicit action if they report themselves to the Swedish Competition Authority.

• The leniency programme

Check also the legislation on this topic in:

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen