This spring, a public inquiry in Sweden proposed a new competition tool that would significantly expand the powers of the Swedish Competition Authority. Under this proposal, the Authority could intervene in markets even without evidence of competition law violations. The tool introduces substantial risk and uncertainty, as it provides no clear restrictions on the measures the Authority could employ.
On behalf of the Confederation of Swedish Enterprise, we analysed the proposed tool and found the following:
THE CURRENT STATE OF COMPETITION IN SWEDEN DOES NOT JUSTIFY A NEW TOOL
The inquiry argues the need for the new tool by stating that the market concentration in Sweden is high compared to other countries. We find that there is no clear indication that competition has worsened over time in Sweden, or that it is weaker in Sweden than in comparable European countries. Therefore, the current competitive conditions in Sweden do not, in our view, provide a sound motive for introducing the new tool.
SIGNIFICANT RISKS ARE ASSOCIATED WITH THE PRPOSED TOOL
New regulations are time-consuming and resource-intensive to implement. Poorly designed measures risk distorting markets rather than improving them—a phenomenon known as regulatory failure. The proposal prioritises speed while granting broad powers to the Competition Authority, which increases the likelihood of regulatory failure. However, in doing so, the inquiry fails to assess the risks tied to individual measures the Authority could take. Our analysis highlights significant risks with more intrusive measures, like structural separation and price regulation, though less so for measures such as information requirements.
This analysis was led by Petter Berg and Jimmy Gårdebrink.
