Federal Court confirms Weko fine against Publigroupe
The advertising agency Publigroupe must pay a definitive fine of 2.5 million Swiss francs for violating the Antitrust Act. The Federal Supreme Court has dismissed the company’s appeal and upheld the Competition Commission’s decision.
In 2007, the Competition Commission (ComCo) found that Publigroupe held a dominant position in the market for the placement and sale of advertisements and advertising space in Swiss print media and had abused this position. Various small companies had been wrongly refused compensation for brokered advertisements. As a sanction, the Competition Commission imposed a fine of CHF 2.5 million. Following the Federal Administrative Court, the Federal Supreme Court has now also confirmed the decision of the Competition Commission.
At its hearing on Friday, the II. Public Law Division dismissed Publigroupe's appeal by three votes to two. According to the judges in Lausanne, it is clear that Publigroupe's conduct violated Article 7 of the Cartel Act. In the opinion of the majority of the judges, PubliGroupe could and should have known that its conduct was not correct under competition law. However, two of the judges doubted whether the provision of the Cartel Act in question was formulated clearly enough for the company to have been able to measure its conduct against it.
According to the court, the amount of the fine is not objectionable. In setting the fine, the ComCo had taken into account the fact that Publigroupe had corrected its conduct during the proceedings. Publigroupe includes the subsidiaries Publicitas, Publicitas Publimedia, Publicitas Publimag and Publicitas Mosse. (sda)
In a press release issued on Friday, Publigroupe pointed out that - in view of the length of the proceedings - the decision was based on market conditions and Publigroupe's market position that date back almost a decade and are no longer relevant today. The world of media and advertising - especially that of the press, including the position of Publicitas in the press advertising sector - has undergone considerable upheaval in recent times.
The future direction of Publicitas must be geared to the challenges of today and tomorrow, which are changing fundamentally. Publicitas is currently in a transformation phase with the aim of restoring profitability in press marketing and further accelerating online activities.
