Swedish Competition Act amended to prevent unfair competition by public authorities

14 December 2009

Henrik Nilsson

As of 1 January 2010, the Swedish Competition Act will be amended to incorporate new tools for the Competition Authority (KKV) to use against unfair competition by public authorities. The amendments also permit private enforcement of the new regulations.

The amendments to the Act will allow the KKV to request the Stockholm District Court to order a public authority (be it central, regional or local) or an entity owned or controlled by a public authority to cease and desist such selling of goods or services which causes or is of a nature to cause the prevention, restriction or distortion of effective competition. The order may be accompanied by an administrative fine.

If the KKV decides not to act on a complaint regarding unfair competition by a public authority, an undertaking affected by the economic activity of the public authority may use the new regulation to request action by the Court.

Economic activity which is deemed to be defensible as being in the public interest may not be banned.

Source: KKV press release http://www.kkv.se/t/NewsPage____5160.aspx