10 July 2025 – Bern
Switzerland’s Competition Commission (WEKO) has concluded an investigation into BMW over a potential abuse of relative market power involving a long-standing dealership. Although WEKO found grounds for concern, it dropped the case after BMW extended the dealership’s contract—but still ordered the company to cover procedural costs.
The case centered around a BMW and MINI dealership that had worked with the manufacturer for decades. Encouraged by BMW’s indication of an expanded business relationship, the garage invested millions of Swiss francs in upgrading its facilities. However, BMW then unexpectedly terminated the partnership without offering a reasonable transition plan.
WEKO considered this a possible abuse of relative market power, a concept under Swiss competition law where a company may be prohibited from taking unfair advantage of smaller business partners who lack reasonable alternatives.
Resolution and Sanctions
During the investigation, BMW and the dealership reached an agreement for a limited extension of their business relationship. This step addressed the competition concerns, prompting WEKO to terminate the investigation.
Despite this resolution, WEKO found that BMW’s initial conduct was likely unlawful, given the dealership’s dependence on BMW and lack of viable alternatives. As a result, the regulator imposed the full procedural costs on BMW.
Appeal Possible
WEKO’s decision may be appealed to the Federal Administrative Court.
Further information is available in the official press release and accompanying documents published by the Commission.
