What is the Fair price Initiative brings?

The Fair price Initiative aims to combat the "high price island Switzerland". Have you looked at the own-initiative text. You can do this? I am skeptical whe

What is the Fair price Initiative brings?

The Fair price Initiative aims to combat the "high price island Switzerland". Have you looked at the own-initiative text. You can do this? I am skeptical whether it really does what it promises. The Problem is, it is trying to use the antitrust laws to a phenomenon, which has to do with the overall economic environment.

Why is that a Problem? With the antitrust law, the competition Commission (Weko) against individual companies comes first. The whole antitrust law is designed to correct the specific error of individual firms. In the case of the different prices at home and abroad, and the difficulties to buy at lower prices abroad, but play very different things an important role: customs regulations, technical regulations, permits, etc.

we would have To start with this framework? , Actually. But this is not the case. Makes it difficult for even the Online shopping abroad with the VAT, and inflated processing fees, although this increase competition and put pressure on the retailers in Switzerland would exercise. And as the Federal Council proposed last year to abolish the import customs duties, rejected the preparatory Committee.

What could do to the competition Commission? The competition Commission is intended to prohibit barriers to competition and possibly buses, to pronounce. But it is not there to regulate markets and their prices. The instruments are lacking. It looks good on the Swatch case, the Comco shall decide in ten years whether and how the Swatch Group, other manufacturers should supply specific watch parts.

Peter Hettich Professor for Public law at the University of St. Gallen . Photo:

the Initiative Brings lower prices? This is difficult to assess. Both the Initiative and the counter-proposals buses in front of see. Thus, an Element is missing, in order to prevent as a preventive measure, the behaviors that we don't want to have. It is clear that the companies will get an Instrument that you can use to threaten and possibly better purchasing conditions.

And what is the consumer benefit? Whether the importers have really lower prices, and then by the companies to the consumers through seeps, it is difficult to assess. This is likely to significantly depend on the competitive conditions in the domestic market. Where the competition is great, would be passed on better import prices.

Many customers are upset at the Geoblocking, which prevents that you can go abroad to buy something. it bothers me too. In the case of films, for example, the distribution chain of the audio to be protected-visual corporations. This is annoying, but has to do with copyright, which is strongly oriented to the country's borders. Also in the case of other Goods, I see no reason why customers are willing to pay higher delivery fees, are not supported. In this regard, the competition Commission has intervened already. As a Swiss customer wanted to buy in Germany, a BMW and was refused, they fined BMW, rightly in my view. But: The competition Commission is selective. To the conditions that lead to high-price island, it changes nothing.

The Initiative wants to meet companies that have a "relative", because their products are essential. The initiators find that the case for Coca-Cola or Nivea abroad significantly cheaper. At first glance, the concern is. The price differences are enormous. In practice, I have my doubts as to whether it really does something. The concept comes from Germany, and there it has had little success. You would pay Coca-Cola or Nivea, would you protect a competitor, the owner or the retailers in Switzerland, but not the competition as a Whole. And that's exactly what you should have in view.

Created: 09.03.2020, 18:13 PM

Updated Date: 09 March 2020, 20:01

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