International Cooperation and Capacity Building on Competition: A Swiss Perspective 7up2 Project...

WettbewerbskommissionCommission de la concurrenceCommissione della concorrenza

International Cooperation and

Capacity Building on Competition:

A Swiss Perspective

7up2 Project Final Meeting

Bangkok, June 28, 2006

Dr. Patrick KrauskopfVice-director of the Secretariat of the Swiss Competition Commission

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ContentsContents

1. Introduction to Swiss Competition Policy

2. International Cooperation

3. Capacity Building

4. Concluding Remarks

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1. Introduction to Swiss Competition 1. Introduction to Swiss Competition PolicyPolicy

Economic context: An increasing globalized economy

Specific features of Switzerland Tasks and aims of the Swiss competition authorities

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Europe 2004Europe 2004

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GDP per Capita 2004GDP per Capita 2004

0

10 000

20 000

30 000

40 000

50 000

60 000

Source: OECD Factbook 2006Source: OECD Factbook 2006

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Trade Balance:Trade Balance:Export minus Import of ServicesExport minus Import of Services

Billion US Dollars, average 2001-2004Billion US Dollars, average 2001-2004


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Trade Balance:Trade Balance:Export minus Import of GoodsExport minus Import of Goods

Billion US Dollars, 2004Billion US Dollars, 2004


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Tasks and Aims of the SwissTasks and Aims of the SwissCompetition AuthoritiesCompetition 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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2. International Cooperation2. International Cooperation

Instruments of international cooperation on competition law and policy

Commitment of competition agreements Enforcement cooperation Swiss perspective

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Instruments of International Instruments of International Cooperation on Competition Law and Cooperation on Competition Law and PolicyPolicy

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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Commitment of Competition Commitment of Competition AgreementsAgreements 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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Enforcement Cooperation (1)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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Enforcement Cooperation (2)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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Swiss PerspectiveSwiss 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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OECD RecommendationsOECD 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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Bilateral Agreement on Air TransportBilateral 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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3. Capacity Building3. 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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Swiss Capacity Building Programs –Swiss Capacity Building Programs –Recent PastRecent Past

Visit of Egyptian competition authorities Dawn raids: Instruction by several European member states‘ competition authorities

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Swiss Capacity Building Programs - Swiss Capacity Building Programs - OngoingOngoing 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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Swiss Capacity Building Programs - Swiss Capacity Building Programs - PlannedPlanned

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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6. Concluding Remarks (1)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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6. Concluding Remarks (2)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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Thank you

for

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