Policy Brief: Competition Law and Policy in Sweden

Sweden’s 1993 Competition Act (CA) remains the foundation of a broad policy approach that includes prohibitions against restrictive agreements and abuse of dominance, control of concentrations, advocacy and support for academic research. Enforcement of this legislation by the Swedish Competition Authority (SCA) marked a shift towards a judicial, rules-based approach.

But after 15 years of experience with the reformed competition policy regime, the system may now be ripe for a next step. Reliance on informal resolution of cases may save resources, but it also reduces transparency. Courts have appeared sceptical of the SCA’s cases, and competition cases take a long time between initiation and final resolution. Yet in the end, sanctions imposed are not sufficient to deter. The balance of resource allocation between advocacy and enforcement may need adjustment, as advocacy results are mixed. The SCA needs stronger legal and economic capacities, yet its resources have been cut in recent years, even in nominal terms. The terms of appointment for the head of the Competition Authority and the President of the Market Court may raise concerns about their perceived independence.

Issues relating to powers, independence, sanctions and impact of advocacy may be addressed by giving the SCA powers to decide fines, strengthening the independence of the competition agency and the Market Court, strengthening sanctions for serious violations by introducing fines for individuals, and making consultation compulsory about trade-offs between competition and other policy interests. A competition agency with new and enhanced powers might need a decision-making council, in order to meet high standards of legal certainty and separation of adjudication from investigation.