The Swedish Competition Authority (Konkurrensverket) has proposed amendments to the country’s competition law, aiming to enhance merger control, particularly in small and local markets. The agency has submitted its recommendations to the government, advocating for a broader scope in blocking mergers that could harm competition, even if they primarily affect smaller geographic areas.
The proposal includes changes to the time limits for merger reviews to improve the efficiency and legal certainty of merger control in Sweden. Konkurrensverket argues that the existing framework, modeled after EU regulations, has notable differences that hinder effective oversight. Under the current rules, mergers impacting small or local markets cannot be prohibited unless they significantly affect a substantial portion of the country, leaving consumers in smaller towns vulnerable to price increases and reduced competition.
To address these gaps, Konkurrensverket suggests aligning Swedish regulations more closely with those of other EU countries, ensuring that harmful mergers in local markets can be blocked. Additionally, the authority proposes extending review periods to allow for more thorough investigations. The proposed adjustments include:
- Removing the requirement that a market must cover a substantial part of Sweden to justify blocking a merger.
- Extending the in-depth merger investigation period from three months to 90 working days.
- Allowing extensions of up to 25 working days per decision, instead of one month, in exceptional cases.
- Increasing the time limit for the Patent and Market Court to review appeals from six to eight months.
- Extending the time limit for the Patent and Market Court of Appeal’s review from three to four months.
- Introducing a provision that prevents the state from covering legal costs if a merger case is dismissed due to the merger not proceeding.
The proposed amendments are expected to take effect alongside any regulatory changes recommended by the ongoing investigation into new competition tools (KN 2023:03). Konkurrensverket argues that these reforms will ensure a more effective and fair merger review process, ultimately benefiting consumers and the economy by maintaining competitive markets.
