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About Antitrust Law in Borgholm, Sweden

Antitrust law in Sweden is often called competition law. It protects fair competition between businesses, helps keep prices competitive, and encourages innovation. Borgholm is a municipality on the island of Öland in Kalmar County. Even though the local market is smaller and seasonal in parts of the economy such as tourism, hospitality, retail, construction, and local services, the same Swedish and European Union competition rules apply. Swedish rules are found mainly in the Swedish Competition Act 2008:579, and EU rules in the Treaty on the Functioning of the European Union. The Swedish Competition Authority, called Konkurrensverket, enforces these laws. Specialized courts in Stockholm, the Patent and Market Court and the Patent and Market Court of Appeal, handle competition cases.

These rules prohibit anti-competitive agreements such as price fixing and bid rigging, prohibit abuse of a dominant market position, and require some mergers and acquisitions to be notified for review. Public bodies are also subject to rules that prevent them from distorting competition when they engage in commercial activities. The same standards apply in Borgholm as anywhere else in Sweden.

Why You May Need a Lawyer

You may need a competition lawyer if your business is contacted by the Swedish Competition Authority about an investigation, inspection, or request for information. Early legal advice is critical to manage risk, protect confidentiality, and decide whether to seek leniency in a suspected cartel. A lawyer can also help you prepare for and respond to a dawn raid, and set up document preservation and internal investigation procedures.

Businesses in Borgholm often work in seasonal and local markets. Common risk areas include informal information exchanges with local competitors, recommended or minimum prices set in distribution networks, supplier exclusivity that forecloses rivals, joint bidding or subcontracting arrangements that cross the line into bid rigging, and price parity or most favored nation clauses used by online platforms. A lawyer can review distribution and franchise agreements, commercial policies, and trade association activities to ensure compliance.

Legal advice is also important before completing mergers or acquisitions, including local transactions that could affect competition in narrow geographic markets. Counsel can assess whether Swedish merger notification thresholds are met and whether the deal raises issues under EU or Swedish law.

If your business has been harmed by a cartel or an abuse of dominance, a lawyer can help assess damages and bring a claim in Swedish courts. If you are a public body or municipal company, a lawyer can advise on the special Swedish rules that apply to public commercial activities to avoid unlawful competitive effects and procurement debarment risks.

Local Laws Overview

Prohibitions on anti-competitive agreements and concerted practices apply under both Swedish law and Article 101 of the Treaty on the Functioning of the European Union. These include price fixing, market sharing, output limitations, customer allocation, bid rigging, and resale price maintenance. Some agreements can be exempt if they produce efficiencies and pass on a fair share of benefits to consumers. EU block exemption regulations may apply to common arrangements such as vertical distribution or research and development.

Abuse of dominance is prohibited under Swedish law and Article 102 of the Treaty on the Functioning of the European Union. Dominance is a position of economic strength, not a fixed percentage, although high market shares such as above 40 percent can indicate potential dominance depending on the facts. Typical abuses include exclusionary practices such as predatory pricing, loyalty rebates, refusal to supply without objective justification, tying, and margin squeeze, as well as exploitative practices such as unfair pricing.

Fines can be significant. Courts can impose administrative fines on companies up to 10 percent of the previous year global turnover. Sweden has a leniency program that offers full immunity to the first company to report a cartel and provide evidence, and reductions for subsequent applicants. There is also a settlement process that can reduce fines where the company admits the infringement and cooperates.

The Swedish Competition Authority can conduct unannounced inspections, often called dawn raids, after obtaining approval from the Patent and Market Court. The authority can review emails, messages, and business records and can ask for explanations from staff. Legal professional privilege protections apply to certain lawyer-client communications.

Merger control applies to concentrations such as mergers, acquisitions of control, and certain joint ventures. Notification in Sweden is mandatory when the parties combined turnover in Sweden exceeds SEK 1 billion and at least two parties each have turnover in Sweden exceeding SEK 200 million. If only the combined threshold is met, the authority can order notification in special cases. Deals meeting the EU thresholds are reviewed by the European Commission instead.

Public bodies and municipally owned companies are subject to the Act on Anti-competitive Public Sales Activities 2010:569. The Swedish Competition Authority can ask a court to prohibit public commercial conduct that distorts competition, for example where a municipality sells goods or services on a market in a way that harms private competitors without public interest justification.

Private enforcement is available under the Competition Damages Act 2016:964. Any person or business harmed by an infringement can claim compensation for actual loss, lost profit, and interest. The limitation period is generally five years from when the claimant knew or should have known of the infringement and the harm, and it is suspended while a competition authority investigates and for a period after a final decision. Joint and several liability applies, with certain protections for small and medium sized enterprises and for leniency recipients. Group or class actions are possible on an opt-in basis under Swedish law.

Individuals are generally not criminally liable for competition infringements in Sweden. However, managers can face disqualification from management positions in serious cases. In public procurement, collusion can lead to exclusion from tenders and contract termination under the Public Procurement Act, and other legal consequences may follow under general criminal or civil rules depending on the conduct.

Frequently Asked Questions

What conduct is illegal under Swedish antitrust rules?

Anti-competitive agreements such as price fixing, bid rigging, market or customer allocation, output restrictions, and resale price maintenance are prohibited. Abuse of a dominant position is also illegal. Certain agreements may be allowed if they meet efficiency criteria, but hard core cartels are strictly prohibited.

Do EU competition rules apply to local businesses in Borgholm?

Yes. EU rules apply when conduct may affect trade between EU member states. Even purely local conduct is covered by Swedish law, which mirrors EU principles. In practice, small local businesses are not exempt and must comply with both frameworks.

Are recommended retail prices allowed?

Genuine non-binding recommendations are generally allowed if there is no pressure or incentives that make them fixed or minimum prices. Setting minimum resale prices or indirectly enforcing a minimum through threats, penalties, or monitoring is typically prohibited. In online sales, restrictions on the ability to set prices are also sensitive.

Can I share pricing or sales information with competitors in a local association?

Sharing current or future pricing, discounts, costs, customer lists, or strategic plans with competitors can infringe the law because it reduces uncertainty and can facilitate collusion. Trade associations should use aggregated, historic, and sufficiently anonymized data and have clear compliance rules. When in doubt, seek legal advice.

What happens during a dawn raid by the Swedish Competition Authority?

The authority arrives unannounced with a court order, secures premises, reviews paper and electronic records, and may copy data. Staff can be asked to explain documents. You should cooperate lawfully, assert legal privilege where appropriate, avoid destroying documents, and contact counsel immediately. The authority can seal rooms and impose fines for obstruction.

How does leniency work in Sweden?

The first company to report its participation in a cartel and provide sufficient evidence can receive full immunity from fines, provided it cooperates, ends the infringement, and did not coerce others to join. Later applicants can get fine reductions based on the value of their evidence. Individuals do not receive criminal immunity because Sweden uses administrative fines for companies, but cooperation can mitigate related risks.

When must I notify a merger or acquisition?

You must notify in Sweden when the parties combined turnover in Sweden exceeds SEK 1 billion and at least two parties each have more than SEK 200 million in Swedish turnover. If only the combined threshold is met, the authority can order a notification in special circumstances. Notification must occur before closing, and standstill obligations apply until clearance.

What is dominance in a market like Borgholm?

Dominance means the ability to act to a significant extent independently of competitors, customers, and consumers. It depends on market shares, barriers to entry, buyer power, and the scope of the market, which can be local for services delivered in Borgholm. High market share such as above 40 percent may indicate potential dominance, but the assessment is case specific.

Can I claim damages if I overpaid due to a cartel?

Yes. Under the Competition Damages Act 2016:964 you can seek full compensation for harm, including interest. You need to show the infringement, the harm suffered, and causation. Court findings or decisions by the Swedish Competition Authority or the European Commission can help prove an infringement. The limitation period is generally five years and is suspended during investigations and appeals.

What risks do public bodies in Borgholm face under competition rules?

Municipalities and municipally owned companies must avoid commercial activities that distort competition without public interest justification. The Swedish Competition Authority can seek court orders to stop such activities. In procurement, evidence of collusion can require exclusion of suppliers and can invalidate awards. Public bodies should design tenders to promote competition and monitor for bid rigging indicators.

Additional Resources

Konkurrensverket, the Swedish Competition Authority, is the main enforcement body for anti-competitive agreements, abuse of dominance, merger control, and anti-competitive public sales activities. It publishes guidelines, decisions, and compliance materials.

The Patent and Market Court at Stockholm District Court handles competition cases, including applications for inspections, fines, and appeals of authority decisions. The Patent and Market Court of Appeal at Svea Court of Appeal hears appeals from the first instance court.

The European Commission Directorate General for Competition enforces EU competition law in cases with a cross border dimension and publishes notices, block exemption regulations, and guidance relevant to Swedish businesses.

The Swedish National Courts Administration and local bar associations can help you find lawyers with competition law expertise. Business and trade associations often provide practical compliance training, which should be reviewed by counsel to ensure it aligns with competition rules.

Next Steps

If you think you face an antitrust issue, start by preserving relevant documents and communications. Stop any conduct that appears problematic, such as discussions with competitors about prices or customers, and avoid creating new written statements about the issue. Inform senior management and appoint a response team.

Contact a lawyer experienced in Swedish and EU competition law. Provide a clear account of the facts, markets affected in Borgholm and surrounding areas, and key documents. Ask counsel to assess risk and advise on options, including whether to seek leniency or a settlement if a cartel risk exists.

If you plan a transaction, ask counsel early to assess merger control thresholds and timing. Build clearance timelines into your deal planning and avoid closing before approvals. For distribution and online sales strategies, request a compliance review of agreements and policies to align with Swedish and EU rules.

If you suspect you have been harmed by anti-competitive conduct, gather invoices, contracts, and other proof of overcharges or lost sales, and discuss with counsel whether to pursue a damages claim or engage in settlement discussions.

Public bodies and municipal companies should review commercial activities for compliance with the Act on Anti-competitive Public Sales Activities and ensure procurement processes are designed to promote competition and detect signs of collusion. Regular training and a clear escalation policy help prevent problems.

This guide is for general information only and is not legal advice. For advice on your specific situation in Borgholm, consult a qualified competition lawyer.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.