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International Cooperation and Capacity Building on Competition: A Swiss Perspective 7up2 Project Final Meeting Bangkok, June 28, 2006 Dr. Patrick Krauskopf Vice-director of the Secretariat of the Swiss Competition Commission
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2 Contents 1. Introduction to Swiss Competition Policy 2. International Cooperation 3. Capacity Building 4. Concluding Remarks
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3 1. Introduction to Swiss Competition Policy Economic context: An increasing globalized economy Specific features of Switzerland Tasks and aims of the Swiss competition authorities
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4 Europe 2004 Europe 2004
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5 GDP per Capita 2004 Source: OECD Factbook 2006
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6 Trade Balance: Export minus Import of Services Billion US Dollars, average 2001-2004 Source: OECD Factbook 2006
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7 Trade Balance: Export minus Import of Goods Billion US Dollars, 2004 Source: OECD Factbook 2006
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8 Tasks and Aims of the Swiss Competition Authorities The Competition Commission (Comco) Takes decisions Addresses recommendations and reports Renders opinions The Secretariat Examines Prepares decisions Gives legal advice Observes markets Gathers information Conducts dawn raids and hearings Is responsible for contacts with other authorities
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9 2. International Cooperation Instruments of international cooperation on competition law and policy Commitment of competition agreements Enforcement cooperation Swiss perspective
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10 Instruments of International Cooperation on Competition Law and Policy Agreements on competition law enforcement Mutual legal assistance treaties Friendship, commerce, and navigation treaties Technical cooperation agreements Free trade, customs union, economic partnership, or common market agreements Multilateral and plurilateral instruments
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11 Commitment of Competition Agreements Hard law: Typically creates obligations that are legally binding Ex: Mutual legal assistance treaties (US-Canada, US-UK) Soft law: Typically creates undetermined obligations with general political promises Compliance discretionary Memorandum of understanding Definition of specific rules and responsibilities Non-binding
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12 Enforcement Cooperation (1) Cooperation agreements upon enforcement cooperation Cooperation between the EU and the USA Developing countries Impediments to enforcement cooperation Differences in competition laws, economic doctrines, enforcement practices or procedures Confidentiality accorded under national leniency programs to information from leniency applications
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13 Enforcement Cooperation (2) Factors conducive to enforcement cooperation Shared perception of common interest Mutual benefit Factors strengthening enforcement cooperation Development of common standards Balance between transparency and the protection of confidential information
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14 Swiss Perspective No specific agreement on cooperation activities with other authorities ICN OECD Recommendations Recommendation on cooperation between antitrust authorities Recommendation on cooperation against hard-core cartels Bilateral agreement on air transport between Switzerland and EU
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15 OECD Recommendations Recommendations on cooperation between antitrust authorities 1986, revised in 1995 Basic tools for cooperation: notification of cases, exchange of information, coordination of action, consultation, conciliation Non-binding Recommendation on cooperation against hard-core cartels 1998 Particular forms of cooperation: positive comity, document sharing... Non-binding
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16 Bilateral Agreement on Air Transport Between the EU and Switzerland 06/01/2002 Reciprocal liberalization of air traffic rights EU competition rules are also applied in Switzerland by the EU Commission Switzerland remains competent concerning state aids Cooperation for enforcement and procedural measures
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17 3. Capacity Building Main components Development of legal and regulatory framework Comprehensive human resource development Comprehensive institutional (or organizational) development Development of information systems Continuing process! Swiss capacity building programs Recent past Ongoing Planned
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18 Swiss Capacity Building Programs – Recent Past Visit of Egyptian competition authorities Dawn raids: Instruction by several European member states‘ competition authorities
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19 Swiss Capacity Building Programs - Ongoing COMPAL program 7up2 project Working groups within ICN (among others) Steering group Merger working group - Notification and procedure - Investigative techniques Cartel working group - General framework - Enforcement techniques
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20 Swiss Capacity Building Programs - Planned Technical assistance to newly created European and non-European agencies Working groups within ICN Organization of ICN annual conference in 2009
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21 6. Concluding Remarks (1) Need to set forth a formal legal framework in the form of bilateral or multilateral cooperation agreements with the following objectives: Build a closer relationship and confidence between competition authorities Promote a convergent approach towards methodical issues Reduce the inefficiencies of overlapping investigations
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22 6. Concluding Remarks (2) Dans la vie, il n‘y a pas de solutions, il y a des forces en marche: il faut les créer, et les solutions suivent. (Saint Exupéry – Vol de nuit)
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23 Thank you for your attention!
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