Investigations
Competition Commission launches an investigation into possible manipulation of the LIBOR and TIBOR reference rates
On February 3, 2012, the Competition Commission launched an investigation into possible manipulation of the London interbank offered rate (LIBOR) and its Japanese equivalent TIBOR against the two major Swiss banks (UBS and Credit Suisse), ten foreign financial institutions (Bank of Tokyo-Mitsubishi UFJ, Citigroup Inc., Deutsche Bank Aktiengesellschaft, HSBC Holdings plc, JP Morgan Chase & Co., Mizuho Financial Group Inc., Rabobank Groep N.V., Royal Bank of Scotland Group plc, Société Générale S.A., Sumitomo Mitsui Banking Corporation) and some other financial intermediaries.
The investigation concerns how the banks set LIBOR and TIBOR, the key reference interbank lending rates for vast quantities of financial instruments set in London and Tokyo. LIBOR and TIBOR are derived from rates banks charge each other. Both are used widely as international benchmarks.
The Competition Commission announced that the information had come to light following an application under its leniency programme, suggesting a whistleblower may have prompted the inquiry. Such information indicated that collusion between derivative traders might have influenced the LIBOR and the TIBOR reference rates; market conditions regarding derivative products based on these reference rates might have been manipulated too.
The Competition Commission is focusing on the impact in the Swiss market. Other antitrust regulators probing LIBOR rates include the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, Japan's Financial Supervisory Agency, the U.K. Financial Services Authority, and European Union regulators.
Merger Control
Competition Commission approves Orange Switzerland acquisition by Apax
On February 17, 2012, the Competition Commission cleared the contemplated acquisition of Orange Switzerland by Apax Partners LLP. The preliminary investigation did not reveal any indication that the contemplated acquisition would create or strengthen a dominant position of any of the network providers in the Swiss mobile telecommunication market.
Swisscom, Sunrise and Orange are the three major market players on the Swiss mobile telecommunication market. The preliminary investigation revealed that the acquisition of Orange Switzerland by the UK private equity investment firm Apax Partners LLP does not change the present structure of the market.
The Competition Commission found that, following the proposed acquisition, the Swiss mobile telecommunication market will remain characterised by the presence of the three large network providers, which ensures sufficient competitive dynamics and market openness for further innovation. The Competition Commission thus decided that the contemplated transaction between Orange Switzerland and Apax does not require any further investigation and does not raise any concerns from a competition law perspective.
Recommendation
Competition Commission publishes a recommendation on the opening of taxi services market
On March 29, 2012, the Competition Commission published a recommendation to all cantons and municipalities to grant taxi services providers from other regions the possibilities of unhampered development.
In Switzerland, the regulations related to taxi services fall within the authority of cantons. Most cantons however delegate this competence to the municipalities. This leads to abundance of regulations which hamper the taxis' free movement between the municipalities.
The review by the Competition Commission of the cantonal and local regulations revealed that cantons and municipalities do not sufficiently apply the principles of the Act on Internal Market (AIM). The AIM aims to create a Swiss internal market in which all economic players may act without local or cantonal restrictions. On that basis, taxi service providers have a right to provide certain taxi services even beyond the territory of the municipality of their registration.
The Competition Commission's recommendation explains which activities any taxi service provider has a right to exercise outside of the municipality of its registration. In addition, it states the conditions under which all municipalities shall deliver an authorisation which allows undertakings from other regions to provide taxi services. The Competition Commission's recommendation also reminds the relevant authorities that the concessions for the use of parking areas on the public domain shall be granted in a transparent and non-discriminatory manner.
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