Publigroupe: Federal Administrative Court confirms Weko fine
The Federal Administrative Court has upheld the fine of 2.5 million Swiss francs imposed by the Competition Commission (Weko) on the advertising agency Publigroupe. The company will appeal the decision to the Federal Supreme Court.
According to SDA, the Federal Administrative Court initially confirmed the opinion of the Competition Commission that Publigroupe holds a dominant position in the market for the placement and sale of advertisements and advertising space in print media in Switzerland. In this context, the company had discriminated against certain other intermediaries by imposing unjustified commissioning conditions. According to the judges in Bern, it is irrelevant that Publigroupe undertook to change its commissioning practice during the course of the Weko investigation. Publigroupe had argued unsuccessfully in its appeal that the Weko proceedings should have been definitively concluded with the submission of this declaration. There was no longer any scope for imposing sanctions. On the contrary, the fine imposed by the Competition Commission violated the principle of legitimate expectations.
However, according to the Federal Administrative Court, previous anti-competitive behavior must also be punished if there is an amicable agreement for the future. Furthermore, according to the court, the duration of the proceedings and the amount of the fine itself are not objectionable.
Publigroupe appeals judgment to the Federal Supreme Court
The company will appeal the ruling to the Federal Supreme Court, as Publigroupe announced on Friday. Publigroupe also states that the current decision is based on market conditions that existed several years ago. Since then, the media and advertising world has changed fundamentally.
The Competition Commission launched its investigation in 2002. In 2007, the competition authorities came to the conclusion that Publigroupe had wrongly refused to compensate various small companies for advertisements placed. Although, according to Publigroupe, this only affected 3 out of 33 intermediaries, the Competition Commission considered this to be a "serious infringement".
However, according to the Federal Administrative Court, previous anti-competitive behavior must also be punished if there is an amicable agreement for the future. Furthermore, according to the court, the duration of the proceedings and the amount of the fine itself are not objectionable.
Publigroupe appeals judgment to the Federal Supreme Court
The company will appeal the ruling to the Federal Supreme Court, as Publigroupe announced on Friday. Publigroupe also states that the current decision is based on market conditions that existed several years ago. Since then, the media and advertising world has changed fundamentally.
The Competition Commission launched its investigation in 2002. In 2007, the competition authorities came to the conclusion that Publigroupe had wrongly refused to compensate various small companies for advertisements placed. Although, according to Publigroupe, this only affected 3 out of 33 intermediaries, the Competition Commission considered this to be a "serious infringement".
