The Swedish Competition Authority’s decision to impose a 16.9 million SEK fine on Tapwell, a supplier of plumbing products for kitchens and bathrooms, has been upheld by the Patent and Market Court. The court confirmed that Tapwell violated competition rules by restricting retailers’ ability to set their own prices when selling the company’s products online.
This ruling marks a significant step in enforcing Sweden’s competition laws, with Marie Östman, Director General of the Swedish Competition Authority, emphasizing that price control is a serious breach of the rules. “Price control risks harming competition and driving up costs for consumers,” Östman said. “This is the first case since the Swedish Competition Authority was granted the power to impose competition fines where a company has been fined for so-called vertical price control.”
The case stems from Tapwell’s actions between 2021 and 2023, during which the company limited the ability of retailers to determine their own pricing on online sales, particularly those aimed at private consumers. The Swedish Competition Authority deemed this a violation of anti-competitive cooperation, with the online aspect of the price control raising particular concern due to its widespread impact.
Tapwell initially appealed the authority’s decision to the Patent and Market Court, but the court has now confirmed the fine, asserting that the company’s conduct contravened competition laws. The ruling solidifies the Swedish Competition Authority’s stance on maintaining fair pricing practices in the market.
The decision can still be appealed to the Patent and Market Court of Appeal, but for now, the 16.9 million SEK fine stands, sending a clear message about the importance of upholding competition principles in Sweden.
