Antitrust Law Daily Wrap Up, ANTITRUST LAW NEWS: EC competition cooperation agreement with Switzerland becomes effective, (Dec 1, 2014)

By John W. Arden, J.D., LL.M.

The European Commission’s cooperation agreement on competition matters with Switzerland came into force today, according to an EC announcement. The agreement—intended to strengthen cooperation between the Commission and the Swiss Competition Commission—will enable the two competition authorities to exchange evidence obtained in their respective investigations.

Signed in May 2013, the agreement provides a framework for cooperation on competition on policy issues, enforcement efforts, and priorities. The EC and the Swiss Competition Commission will notify each other about concrete enforcement activities affecting each other’s major interests, the EC noted.

This is the first time that such a cooperation agreement allows authorities to exchange evidence obtained in their respective investigations. The exchange of information will be subject to strict conditions protecting business secrets and personal data, according to the Commission. Information will be subject to exchange when both authorities investigate the same or related conduct or transaction. The receiving authority will be able to use the evidence only for the enforcement of its competition rules. No evidence could be used to impose sanctions on individuals.

“The possibility to exchange evidence gives competition authorities new strength,” said EU Commissioner in charge of competition policy Margrethe Vestager. “I am very pleased on behalf of consumers and companies alike, and I believe this agreement will lead to more efficient competition law enforcement.”

Previously, the European Union entered into bilateral competition cooperation agreements with the United States (1991), Canada (1999), Japan (2003), and South Korea (2009). These “first generation” agreements contain various instruments of cooperation in the area of competition policy, but do not allow competition authorities to exchange information and documents, unless they have obtained express waivers from the sources of the information. The EC-Swiss Competition Commission pact is the first “second generation” agreement that enables the competition authorities to exchange evidence.

The EU and Switzerland are important economic partners whose economies are deeply integrated, the EC observed. As a result, many anticompetitive practices have cross-border effects on trade between the jurisdictions.

News: Antitrust