State and competition
The Confederation and the cantons work to create favourable conditions for the Swiss economy within their respective areas of responsibility, guided by the principle of economic freedom. Any departure from this principle must have a basis in the Federal Constitution or cantonal sovereign rights, serve a public interest and be proportionate. In practice, this means keeping markets as open as possible and avoiding disproportionate regulatory barriers to entry. It also means that state-owned or state-affiliated enterprises must not enjoy undue competitive advantages: all companies, whether state-affiliated or private, should compete on a level playing field.
State aid
State aid gives selected companies an advantage over their competitors, which can distort competition. Even so, state aid may be considered desirable, particularly for political reasons. To balance these competing interests, the EU systematically supervises state aid across its member states. Switzerland currently has state aid supervision only in the aviation sector, where the Competition Commission reviews all state aid and issues opinions to the granting authorities. The EU requires Switzerland to dynamically adopt EU state aid rules going forward, but only under certain agreements forming part of the package Switzerland-EU approach (electricity, air transport and land transport).
On the basis of the negotiated outcome, the Federal Council has drafted a federal act on the domestic implementation of international law provisions on state aid (State Aid Supervision Act). The Act was submitted to Parliament as part of the Federal Council dispatch on the Switzerland–EU Package.
State-affiliated enterprises and competition
State-affiliated enterprises are active across a range of markets and in some cases compete directly with private providers. For competition to function effectively and for all market participants to compete on equal terms, state-affiliated enterprises should hold no meaningful competitive advantage in these markets. The Federal Council has embedded this principle in its Corporate Governance guiding principles (Principle 15a).
Further information
- Economic Policy Fundamentals
Studies on the state and competition
Index
Press releases
Relevant topics
Economic Policy
SECO monitors and analyses national and international economic developments, identifies the need for action in economic policy, and reviews federal legislation relevant to the economy. Its analyses and forecasts aim to provide objective foundations for the Confederation’s economic decision‑making.
Competition law
Competition law sets the rules for safeguarding free and effective competition and preventing anti-competitive conduct. The State Secretariat for Economic Affairs is responsible for developing the legal framework for this area, in particular the Cartel Act, the Internal Market Act and the Price Supervision Act.
Regulation
SECO is committed to promoting business‑friendly framework conditions. As the federal competence centre for regulatory matters, we support and advise the responsible offices in analysing the economic impact of new legislative proposals and in implementing the Act on Reducing the Regulatory Burden on Businesses. The objective is efficient regulation that lowers costs, fosters innovation and enables sustainable economic growth.
Contact
Economic Policy Directorate
Growth and Competition Policy
Holzikofenweg 36
CH - 3003 Bern