The Swedish Competition Authority appeals a judgment on anti-competitive agreements
Excessively long competition clauses between competing companies have no other purpose than to prevent competition. This is the viewpoint of Stockholm City Court in a judgment concerning three removal companies. The Swedish Competition Authority finds fault in the fact that the Court nonetheless is choosing to free the three companies from paying penalties/administrative fines.
In 2014, the Swedish Competition Authority sued three companies in the relocation industry because they collaborated in an unauthorised manner through signing agreements that exclude competition during a five-year period.
¬“During a two-year period, it is reasonable to allow this types of clauses. However, the negative effects on Swedish markets and consumers are significant if, as the City Court concluded, they would be allowed for an additional three years,” says the Swedish Competition Authority's Director-General Dan Sjöblom in a statement.
“It is therefore important to appeal the judgment to the Market Court in order to provide clarity regarding the fact that, in cases like this, it is not permitted to pay other companies to refrain from competing for five years”.
It was in connection with a removal company acquiring shares of two other companies that a written agreement was signed stipulating that the sellers would not compete with the buyer on international furniture removals for five years.
The Swedish Competition Authority went to court and demanded that the three companies, Alfa Quality Moving AB, NFB Transport Systems AB and ICM Kungsholms AB, together would pay SEK 42 million in penalties/administrative fines.
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Last updated: 2021-05-17
Press release16 may 2016