Current merger control in Switzerland takes little account of the economic impact of mergers. The dominance test enshrined in the Cartel Act could therefore be replaced by a so-called SIEC test (‘Significant Impediment to Effective Competition’). This could contribute to the emergence of fewer companies with market power, which should have a positive effect on the competitive environment in Switzerland in the medium to long term. The Federal Council therefore decided on 22 June 2016 to submit a consultation draft on the modernisation of merger control in the Cartel Act.

In this context, Swiss Economics has prepared a study analysing the economic impact of a change from the dominance test currently applied in Switzerland to the SIEC test used in the EU. The study provides answers to the following questions, among others:

• What are the weaknesses of the current dominance test and why does Switzerland need to modernise merger control?
• What concrete economic effects would the introduction of a SIEC test have?
• Are there alternatives to the SIEC test?
• Should the introduction of the new test be accompanied by further adjustments (e.g. regarding the assessment deadlines or the notification obligation)?
• What experiences have been made abroad with the SIEC test and how have the intervention rates developed?
• What would be the cost to companies and authorities of switching to a SIEC test?

Publication

• Study