Introduction
The revised Act on Cartels and Other Competition Restraints came into force in 2004. Due to the
protracted nature of proceedings before the Competition Commission and the often equally timeconsuming
appellation proceedings at the Federal Supreme Court, there remains a steady flow of
new decisions on Cartel Act infringements – some of which directly affect different parts of franchising
agreements including the Swiss market.
To avoid the adverse effects of such infringements when drafting and implementing franchise
agreements, it is paramount for both parties to respect the boundaries of the Cartel Act, which does
not always follow the competition law applicable in the European Union.
In particularly serious cases financial penalties for Cartel Act infringements can amount to up to 10%
of a company’s annual revenue over the past three business years. The legal costs of defence are
considerable and should be avoided by careful contract drafting. The involvement of a company in a
commission investigation is made public from the outset, which can severely damage a company’s
business reputation in Switzerland, even in the absence of a final adverse decision in a particular case.
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