Competition Authority accepts advertising body's commitments


The Swedish Competition Authority has decided to accept commitments given by the Swedish Association of Advertisers and its service company, Sveriges Annonsörer AB, and has applied to the Stockholm City Court for an order requiring each party to abide by the commitment on penalty of a fine of SEK 2 million.

At its own initiative, the Competition Authority had investigated the system whereby media companies when selling advertising space make available what is known as an advertising and media bureau remuneration. The agency found that the Association of Advertisers had specified certain percentage levels for such remunerations in its training materials and on its website.

The Competition Authority’s preliminary assessment was that the specified rates were either designed to restrict competition or were anti-competitive in practice, and informed the Association of Advertisers of its opinion in this matter. The Association thereupon provided a written commitment whereby it agreed to cease specifying the size of such remunerations, or making recommendations in this respect, for instance by recommending percentage rates for each respective type of media.

In view of this commitment, the Competition Authority has concluded that there are no longer grounds for taking action against the Swedish Association of Advertisers.

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