Protection of free competition

Switzerland's economic system is based on the principles of the free market, and existing competitive constraints are being eliminated. Free and fair competition is strengthened by a strict Cartel Act, in which cartels are not illegal but abuses are prosecuted. Since 1995, Switzerland’s cartel legislation has largely been harmonized with EU regulations. The Internal Market Act ensures greater competition and the elimination of protectionist regulations at cantonal and municipal levels. The Competition Commission can intervene if there are grounds for suspecting unacceptable restrictions on competition. It also investigates whether mergers have negative effects on free competition and supplies the authorities with recommendations on promoting effective competition.