2013 ANNUAL REPORT SWEDISH COMPETITION AUTHORITY

The core values of the Swedish Competition Authority must permeate our activities and guide our work. These core values are based on the key words competent, respectful and result-oriented. The photos in the 2013 annual report reflect the keyword ”result-oriented”, focusing on the activities and cases handled by the Swedish Competition Authority.

Contents A word from the Director-General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Our mandate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Law enforcement and supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Examples of Competition Act cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Improvement measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Public procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Law enforcement and supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Applications for procurement fines in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Supervision of the Act on System of Choice in the Public Sector . . . . . . . . . . . . . . . . . . . . . . . . 43 Improvement measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 International work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Cooperation within the EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Nordic cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 EU statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Other international cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Staff and organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Facts and financial accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Facts in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Financial review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Government assignments reported 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Summary of significant information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Statement of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

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“Ultimately, our work is to act in the best interests of the consumers and tax payers.” The Swedish Competition Authority’s vision is: ”Welfare through well-functioning markets.” Those words eloquently sum up the direction of our efforts at the Swedish Competition Authority. Ultimately, our work is to act in the best interests of the consumers and tax payers, by promoting competition and striving towards a well-functioning public procurement. The core values that we all adhere to at the Swedish Competition Authority express our intention to be perceived as competent, respectful and result-oriented. This year we saw the final judgment of the Market Court in the case against TeliaSonera. The company was found guilty of abusing its dominant position by pushing smaller competitors out of the broadband (ADSL) market through its pricing. TeliaSonera was sanctioned to pay SEK 35 million in administrative fines for the damage to competition. I am very satisfied with this conviction, which shows that dominant actors cannot simply act as they please. At the same time, it is important to streamline court proceedings so that future cases can be processed in a much shorter time than the eight years it took to finally settle this one. Not all types of cooperation between companies are illegal. On the contrary; it can be good for smaller companies to cooperate in challenging larger and more established companies. This can increase competition. Over the year, we have produced a guide to support smaller companies that want to collaborate on procurements. Private enterprise must not be eliminated by unfair competition from the public sector. This is the essence of the stricter Competition Act that was introduced a few years ago, and now the first judgment based on that act has gained legal force. It pertains to the municipal bus company Skelleftebuss, which is no longer allowed to sell chartered bus services as it did before. The ambition of the Swedish Competition Authority is to contribute to all municipalities and authorities reviewing their operations to ensure that they are not in breach of this law.

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It is all too often that procuring authorities stray from the procurement regulations. Since we have had the possibility of demanding procurement fines from any authority that illegally awards direct contracts, we have brought no less than 63 cases before the courts. In most cases, the courts have sided with us in respect of both culpability and sanctioning. I am pleased to say that over the year we have been able to contribute to knowledge development within the areas of public procurement and competition. We have funded research, had reports from independent researchers and internally we have taken the initiative for a number of reports that have increased our knowledge of market issues, for example Konkurrensen på den finansiella tjänstemarknaden (Competition on the financial services market) and Osund konkurrens i offentlig upphandling (Unfair competition in public procurement). Commissioned by the government, we have published Konkurrensen i Sverige 2013 (Competition in Sweden 2013), focusing on the areas of construction and housing, fuel, dental care and competition neutrality. The government has assigned the Swedish Competition Authority the responsibility for an increased procurement support. Expertise and tasks that currently lie with the Swedish Environmental Management Council, the procurement support unit of Kammarkollegiet – the Legal, Financial and Public Procurement Agency, and with the innovation procurement unit of Vinnova will gradually be transferred to the Competition Authority. The work to coordinate these activities is intended to be complete on 1 July 2014. I am also happy that the Swedish Competition Authority has been entrusted with developing Sweden’s future procurement support. With this expanded mandate, a modernised organisation and the commitment and expertise of our co-workers, we are well-equipped for the future.

Dan Sjöblom, Director-General

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – A wor d f rom t h e Di r ec tor- Ge n e r a l

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2013 in brief

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – t h e y e a r i n br i e f

23 JANUARY  |  The Swedish Competition Authority presents a strategy for how it will work, as a supervisory authority, on issues relating to free choice in the years 2013–2015. 24 JANUARY  |  The Swedish Competition Authority publishes the report Kommunernas valfrihetssystem – med fokus på hemtjänst (Municipal systems of choice – focusing on home-help services). 24 JANUARY  |  The Swedish Competition Authority brings an action in court for SJ to pay procurement fines of SEK 8.5 million, after SJ awarded two direct contracts for cleaning services to a value of around SEK 116 million. 20 FEBRUARY  |  The Swedish Competition Authority appeals the acquittal of Räddningstjänsten Dala Mitt to the Market Court. 5 MARCH  |  The Nordic competition authorities jointly publish the report Competition leads to innovation, growth and a more effective public sector. 12 APRIL  |  After eight years of litigation, TeliaSonera is sanctioned by the Market Court to pay SEK 35 million in administrative fines for abuse of a dominant position. 26 APRIL  |  The Swedish Competition Authority launches a brand new guide for smaller companies looking to cooperate in procurements. 23 MAY  |  Statens servicecenter is taken to court by the Swedish Competition Authority to pay procurement fines of around SEK 1.5 million for illegally awarding direct contracts. 17 JUNE  |  The Swedish Competition Authority publishes the report Konkurrensen på den finansiella tjänstemarknaden – inlåning, bolån och fonder (Competition in the financial service market – deposits, mortgages and funds). 18 JUNE  |  The Swedish Competition Authority submits a summons application demanding that Swedavia be required to pay administrative fines of SEK 340,000 for abuse of a dominant position, referring to the terms for taxi services at Arlanda. 19 JUNE  |  The Swedish Competition Authority brings an action before Stockholm City Court to prohibit Växjö municipality, under penalty of SEK 5 million, from setting requirements related to the connection of district heating in the sale of small houses. 3 JULY  |  The Swedish Competition Authority publishes the report Osund konkurrens i offentlig upphandling, om lagöverträdelser som konkurrensmedel. (Unfair competition in public procurement, on illegal actions as a means of competition). 3–4 JULY  |  The Swedish Competition Authority organises three seminars on the theme “Welfare and competition” during the annual Almedalen Week.

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12 JULY  |  The District Court upholds the claim made by the Swedish Competition Authority and prohibited Skelleftebuss from conducting sales in the form of chartered bus services to any clients other than Skellefteå municipality. 12 JULY  |  The Swedish Competition Authority submits a summons application to Stockholm City Court, petitioning for ASSA Sverige AB to be prohibited from acquiring Prokey AB. 28 AUGUST  |  The Swedish Competition Authority submits a summons application petitioning for three companies in the health service sector to be fined a total of close to SEK 30 million in administrative fines as a result of unlawful collaboration in connection to a procurement. 30 AUGUST  |  The Swedish Competition Authority brings an action against Haninge Bostäder AB for procurement fines in the sum of SEK 10 million, for the award of an illegal direct construction contract worth approximately SEK 136 million. 19 SEPTEMBER  |  In a statement to the government the Swedish Competition Authority gives an account of its experiences of the stricter procurement legislation that was introduced three years ago, and suggests changes to a number of important provisions in order to further strengthen their effectiveness. 30 SEPTEMBER  |  Täby Municipality is sanctioned by the Administrative Court in Stockholm to pay a procurement fine of SEK 5 million. 25 OCTOBER  |  The Swedish Competition Authority publishes its report Valfrihetssystem inom Arbetsförmedlingen (System of choice within the Swedish Employment Service). 29 OCTOBER  |  The Swedish Competition Authority appeals to the Supreme Court of Appeal the ruling by Sundsvall Administrative Court of Appeal against Falu Municipality. 14 NOVEMBER  |  The Swedish Competition Authority publishes the report Konkurrens på likvärdiga villkor i kommunernas valfrihetssystem (Competition on equal terms in the municipal system of choice). 20 NOVEMBER  |  The Swedish Competition Authority organises three seminars in connection to the Quality Fair in Göteborg. 28 NOVEMBER  |  The government decides that the Swedish Competition Authority, Kammarkollegiet and Vinnova should prepare the transfer of responsibility for procurement support to the Swedish Competition Authority. 16 DECEMBER  |  The Swedish Competition Authority holds a press conference to present the report Konkurrensen i Sverige 2013 (Competition in Sweden 2013).

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Ou r m a n dat e

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Ou r m a n dat e

Our mandate According to the Swedish Competition Authority’s mandate, our task is to promote effective competition in the private and public sector. We shall also work towards efficient public procurement for the benefit of the general public and the stakeholders in the market. In accordance with the letter of appropriation for 2013 we have worked with: • law enforcement and supervision • improvement measures • knowledge • research • international work • cooperation. Within the field of competition we have focused in particular on the application of legislation and combating cartels. Another priority has been to apply the provision in the Competition Act relating to anti-competitive public sales activities, and to intervene when private and public actors have abused their dominant position on the market.   When it comes to our responsibility for procurement our supervisory activities have prioritised focusing on illegal awards of direct contracts. Emphasis has been placed on procurement fines, but measures to promote the participation of small and medium-sized enterprises in public procurements have also been in focus. These activities are integrated.   To make the annual report easier to read, it is divided into two main sections: one on competition and one on procurement.

”Competition policy plays a major role in increasing efficiency and innovation within the economy, which in turn creates conditions for growth and for handling the challenges facing the Nordic welfare states.”

Authority management and monitoring The Swedish Competition Authority monitors and manages its activities through operational planning, project planning and continuous follow-ups. Other management and monitoring tools at our disposal include our case handling system, our monitoring of the business environment and the media, our financial and human resources management and time reports as well as a process-based system for document registration. Our approach is based on the lean philosophy. In practice, this means that we have to create efficient flow in the Swedish Competition Authority’s processes. We have conducted external stakeholder surveys since 1993.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Ou r m a n dat e

Quality assurance We are continually working on quality assurance to ensure that the Swedish Competition Authority administration meets the requirements for legally certain, effective and sound processing. To ensure that we have the right expertise and achieve a high level of quality, our work is often conducted in project form. Decisions are preceded by quality-assurance measures.   We have status meetings in order to create transparency in our investigation of various cases. During a status meeting, parties and their representatives are made aware of the Swedish Competition Authority’s view with regards to their case and what will be the next stage in the investigation. Participants also have the chance to ask questions to the project group. At the request of a party, the Swedish Competition Authority also allows for the possibility of a verbal procedure. This is a formalised opportunity to verbally express opinions regarding the draft decisions of the Swedish Competition Authority. In 2013, we have developed our routines for interviews and for the handling of sales data in connection to concentrations between undertakings. The Swedish Competition Authority’s decisions in any given case are made by the Director-General or the person delegated by him. The Chief Legal Officer, the Chief Economist and the Deputy Director-General participate in the preparation of decisions, together with the head of department and the co-workers involved in the investigation of the case in question.

Tip-offs are important for our work Tip-offs about competition problems encountered often form the basis of our work to track down and take measures against serious infringements of the rules and regulations that we implement or supervise. If a competition problem cannot be addressed through legislation, we will conduct an investigation and then submit to the government proposals for amendments to the rules. To fulfil our task of monitoring public procurements, it is important for the Swedish Competition Authority to receive comments on the Public Procurement Act, and information about procurements that do not comply with the rules and regulations. Around a third of the comments that we receive from companies are directed at procuring agencies. This may involve the illegal direct award of contracts, unclear contract documents or decisions that are being called into question by suppliers. The Swedish Competition Authority received around 1,100 tip-offs and complaints from companies, customers and consumers this year. The majority of these referred to competition issues, of which around 70 were classified as anti-competitive public sales operations. 25 cases concerned systems of choice and the other 500 related to public procurement.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Competition Law enforcement and supervision The Swedish Competition Authority monitors the application of the Swedish Competition Act and Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU). During the last year, the Swedish Competition Authority made 103 decisions in accordance with the Competition Act and Articles 101 and/or 102 of TFEU.

Our implementation of the competition rules Several cases relating to the Competition Act have been addressed through the parties changing their conduct or eliminating the competition problem in the course of the case being processed.   The Swedish Competition Authority made 45 decisions relating to concentrations between undertakings. Three cases were subject to special investigation. In one of these, the Swedish Competition Authority ordered the purchaser to report its acquisition.   During the course of the year we also decided to make two summons applications concerning anti-competitive sales activities by public entities.   During 2013 particular efforts have been made in the following sectors: construction, financial services, wholesale services market for locksmiths and the retail market for fuel.

”Consumers are the ones who are affected when competition does not work properly. That is why it is important to remove obstacles to competition, allowing creative companies with new ideas to enter the market.”

Bidding cartels It is important that both public procurers and private purchasers get in touch with the Swedish Competition Authority if they suspect a cartel is in operation. During 2013 we have continued to provide information on how cartels can come about, how they can be discovered and how the Swedish Competition Authority can be tipped off. Just as in previous years, we have primarily directed this information to private purchasers and trade associations and have held lectures at different conferences. We have also increased our collaboration with the Swedish Tax Agency and the National Anti-Corruption Unit in order to obtain tip-offs regarding bidding cartels.   Together with them and several other agencies and organisations, the Swedish Competition Authority has been involved in the fight against bribery, corruption and tax evasion through a mutual appeal under the heading “Competition on fair terms” and through several op-ed articles.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Examples of Competition Act cases In this section we present a selection of the cases that the Swedish Competition Authority has been working on over the year to counteract serious restrictions on competition and to increase consumer welfare.

Anti-competitive cooperation Suspected cartel – removal companies The Swedish Competition Authority has made unannounced visits to several companies in the removal services industry. These visits were a step to finding evidence to map out and corroborate suspicions of potentially anti-competitive cooperation. Investigations are ongoing. [ Ref. no. 93/2013 ] Summons application – Aleris, Capio, Hjärtkärlgruppen The Swedish Competition Authority has submitted a summons application to Stockholm City Court, petitioning for three companies in the health service sector to be fined a total of close to SEK 30 million in administrative fines. The background to this application is that companies have unlawfully collaborated in connection to a procurement. [ Ref. no. 483/2013 ] Possible competition issue on the market for commercial radio During 2013, the Swedish Competition Authority has continued working on a possible competition issue on the market for commercial radio. Investigations are ongoing. [ Ref. no. 174/2012 ] Possible competition issue on the tyre market In 2010, the Swedish Competition Authority brought an action against Euromaster AB and Däckia AB for participating in unlawful cartel activities. The two companies submitted joint tenders in a public procurement in 2005. In November 2013, a main hearing was held in Stockholm City Court. The judgment, which sided with the Swedish Competition Authority, was issued on 21 January 2014. [ Ref. no. 605/2010 ]

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Suspected anti-competitive cooperation on statistics in the book industry The Swedish Competition Authority has investigated the planned cooperation between the Swedish Publishers’ Association and the Swedish Booksellers Association regarding statistics on book sales. Based on amendments and the results of the investigation, the Swedish Competition Authority has made the assessment that there is no need for further investigation, and has therefore closed the case. [ Ref. no. 260/2013 ]

Abuse of a dominant position Abuse of a dominant position – Swedavia The Swedish Competition Authority has submitted a summons application to Stockholm City Court, with a claim against Swedavia for SEK 340,000 in administrative fines for abuse of a dominant position. The background is that Swedavia’s contractor EuroPark charged a special fee for nine months in 2011 for meeting arriving taxi customers with a sign at the airport. Swedavia has stopped charging this fee after the Market Court established in a judgment that it was illegal. [ Ref. no. 378/2013 ]

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Abuse of a dominant position – TeliaSonera TeliaSonera has been found guilty of abusing of its dominant position. A little over eight years after the summons application was submitted, the Market Court has sided with the Swedish Competition Authority and sanctioned TeliaSonera to pay SEK 35 million in administrative fines. This was a fundamentally important abuse case, where TeliaSonera in the early 2000s abused its dominant position on the market for access to fixed access networks via resale services for ADSL connections. [ Ref. no. 1135/2004 ]

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Abuse of a dominant position – price labels in refrigerators for certain tobacco products (snus) In 2013, the Swedish Competition Authority has continued to investigate the alleged abuse of a dominant position on the market for sales of snus to retailers. [ Ref. no. 415/2012 ] Abuse of a dominant position – excluding competitors Over the year, the Swedish Competition Authority has continued an investigation of alleged abuse of a dominant position on the securities market. [ Ref. no. 629/2010 ]

Anti-competitive sales activities by public entities Strömstads badanstalt The Swedish Competition Authority has submitted a summons application to Stockholm City Court in which it requests the Court to prohibit the municipality of Strömstad from operating a gym and spa facility in direct competition with private operators in the near vicinity. A main hearing has been scheduled in Stockholm City Court for March 2014. [ Ref. no. 628/2012 ] Växjö Municipality – district heating The Authority has submitted a summons application to Stockholm City Court and requested that Växjö municipality be prohibited from obliging new small houses to be connected to the municipal district heating system. [ Ref. no. 380/2013 ] Malmö Municipality – bowling arena The Swedish Competition Authority has investigated whether the planned municipal bowling arena in Malmö would be in violation of the competition rules. When the municipality cancelled its plans for the bowling arena, the Swedish Competition Authority closed the case. [ Ref. no. 62/2012 ] Skelleftebuss Stockholm City Court has sided with the Swedish Competition Authority and prohibited Skelleftebuss AB from chartering buses where the client is a party other than the municipality. This judgment is now legally binding. [ Ref. no. 391/2011 ] Räddningstjänsten Dala Mitt Municipal Räddningstjänsten Dala Mitt (RDM) has, according to the Swedish Competition Authority, violated the Competition Act by refusing a competing company access to an exercise area. The Swedish Competition Authority brought an action against RDM, but Stockholm City Court issued a verdict of acquittal and did not find that the actions of RDM violated the Competition Act.   According to the Swedish Competition Authority, the City Court set higher requirements in terms of effects than what the legislators intended, and the case was appealed to the Market Court, which in a judgment of 31 January 2014 sided completely with the Competition Authority. [ Ref. no. 392/2011 ] Mälarenergi broadband In 2011, the Swedish Competition Authority submitted a summons application to Stockholm City Court, with a claim against Mälarenergi Stadsnät AB. The request was for Mälarenergi to be prohibited from selling certain broadband services in other municipalities. After the case was brought to court, the operation in question

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was transferred into a new company which is co-owned by several municipalities. Through this broader ownership, they have succeeded in adapting to the regulations stating that a municipal company may not normally conduct any operations outside its own municipality. The Swedish Competition Authority has therefore withdrawn its claim and closed the case. [ Ref. no. 438/2011 ]

Borås ground and works operations The Swedish Competition Authority has submitted a summons application to Stockholm City Court requesting the Court to prohibit the municipal Services Office in Borås from selling ground and works operations to contractors other than the municipality itself. A main hearing has been scheduled in Stockholm City Court for February 2014. [ Ref. no. 45/2012 ]

Concentrations between undertakings The Swedish Competition Authority stopped Assa Abloy’s planned acquisition of Prokey The Swedish Competition Authority brought a case before Stockholm City Court to prevent Assa Abloy from acquiring Prokey. Such an acquisition would have given Assa Abloy a monopoly on the wholesale services market for locksmiths. The Swedish Competition Authority investigation showed that this merger would significantly cause competition on the market to deteriorate. This could have led to a more limited supply and higher prices for locksmith companies in Sweden. After its plea of inadmissibility was rejected by the City Court, Assa Abloy chose not to complete the acquisition, and the Swedish Competition Authority withdrew the summons application. [ Ref. no. 126/2013 ]

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Approval of acquisitions on the market for occupational pension administration After a special investigation of KPA’s acquisition of SPP’s operations on the market for occupational pension administration within the municipal sector, the Swedish Competition Authority has decided not to take any further action on the matter. The overall assessment was that the acquisition would affect competition to such a small extent that it did not warrant a prohibition. [ Ref. no. 276/2013 ] Acquisitions on the retail market for home electronics In April 2013, the company Komplett AS announced its planned acquisition of Webbhallen Sverige AB. Both companies operated on the retail market for home electronics. After conducting a special investigation, the Swedish Competition Authority decided not to take any further action on the matter. This assessment was based on the merger posing no risk of substantially impeding competition on the market. [ Ref. no 270/2013 ] ApoPharm AB After consideration, the Swedish Competition Authority has decided not to take any action on two acquisitions within the pharmaceutical retail sector. The acquisitions involved Kronans Droghandel (Oriola-KD) purchasing Medstop and Apotek Hjärtats (ApoPharm) purchasing Vårdapoteket. The Swedish Competition Authority made the assessment that these concentrations between undertakings would not significantly impede the development of effective competition. [ Ref. no. 234/2013 ]

Follow-up of decisions Follow-up of obligation with fine for default – ice hockey clubs in Svenska hockeyligan (The Swedish Ice Hockey League) The Swedish Competition Authority has made an interim decision that ice hockey clubs affiliated with the Swedish Ice Hockey League must decide whether or not they wish

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

to contract ’locked-out’ NHL players. The decision was subject to a fine for default of SEK 20 million. On 18 December 2012, the Swedish Market Court repealed the Swedish Competition Authority’s interim decision. The Swedish Competition Authority closed the case in January 2013, when the North-American lockout ended and there was no longer any question of NHL players playing in Sweden. [ Ref. no. 501/2012 ]

Follow-up of MD 2012:16 – Swedish Automobile Sports Federation At the end of 2012, the Market Court decided that the Swedish Automobile Sports Federation was not allowed to implement loyalty regulations which meant that its members were unable to participate in competitions organised by other actors. In 2011, the Swedish Competition Authority decided to request that the Swedish Automobile Sports Federation change its regulations to no longer prevent its members from signing up for, participating in or working at motor sporting events that have not been sanctioned by the Federation. At the start of 2013, the Swedish Competition Authority audited the new regulations of the Swedish Automobile Sports Federation and their compliance with the decision of the Market Court. [ Ref. no. 166/2013 ] OK-Q8 For its government commissioned assignment to review competition in Sweden, the Swedish Competition Authority collected data for an empirical analysis of competitive conditions in various sectors, including the fuel market. The Swedish Competition Authority requested data from various petrol companies, pursuant to the Act (2010:1350) on disclosure obligations in matters of market and competition conditions. One of the companies appealed to the Market Court, but still submitted essentially the same information that had been requested. The Market Court therefore did not consider the appeal in substance, only in part. [ Ref. no. 416/2013 ]

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Court decisions and judgments in 2013 SWEDISH COMPETITION AUTHORITY

STOCKHOLM CITY COURT

MARKET COURT

ASSA Sverige AB, Prokey AB 12/07/2013 Ref. no. 437/2013 Petition for ASSA Sverige AB to be prohibited, subject to a fine for default of SEK 100 million, from acquiring sole control over Prokey AB.

03/10/2013 (T1047013) The case was dismissed as the Swedish Competition Authority withdrew its claim when ASSA chose not to go through with the acquisition.

OK-Q8 AB 05/08/2013 (A 2/13, A3/13) The Market Court extended the deadline for a smaller part, and dismissed the case, according to the petition of the Swedish Competition Authority, in all other parts, as OKQ8 had submitted the requested data.

04/07/2013 Ref. no. 416/2013 On 11 April 2013 OKQ8 was requested to provide information no later than 8 May 2013 in case 723/2012.

Skelleftebuss Aktiebolag 31/05/2011 Ref. no. 391/2011 Petition for Skelleftebuss to be prohibited from conducting sales in the form of chartered bus services to any clients other than Skellefteå municipality, subject to a fine for default of SEK 1 million.

12/07/2013 (T816011) The City Court granted the petition of the Swedish Competition Authority, posing a ban on the activities subject to a fine for default of SEK 1 million.

TeliaSonera AB 21/04/2004 Ref. no. 1135/2004 Petition for an administrative fine of SEK 144 million due to abuse of a dominant position.

02/12/2011 (T3186204) The City Court upheld the Swedish Competition Authority’s claim. TeliaSonera appealed the judgment.

15/04/2013 (MD 2013:5, A 8/11) The Market Court sanctioned TeliaSonera to pay an administrative fine of SEK 35 million.

17/02/2011 The EU Court of Justice supported the Swedish Competition Authority in stating that TeliaSonera has abused its dominant position on the ADSL market. 04/02/2009 The City Court decided to request a preliminary ruling from the Court of Justice. The proceedings were stayed. Räddningstjänsten Dala Mitt 26/05/2011 Reg.no. 392/2011 Petition for Räddningstjänsten Dala Mitt to be prohibited from refusing a competing company access to an exercise area, and subject to a fine for default of SEK 1 million.

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30/01/2013 (T792411) The City Court did not uphold the claim. The Swedish Competition Authority appealed to the Market Court.

31/01/2014 (MD 2014:1, A 1/13) The Market Court repealed the ruling of the City Court and issued a ban on the activities of Räddningstjänsten Dala Mitt, subject to a fine for default of SEK 1 million, in accordance with the petition of the Swedish Competition Authority.

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

The Swedish Competition Authority’s supervision of the Transparency Act The Transparency Act is based on state aid rules and makes accounting demands of, above all, publicly owned or publicly financed operations. The Swedish Competition Authority exercises supervision regarding compliance with the Act. The Swedish Competition Authority points out that Sweden does not need to submit a report to the European Commission for 2013 since neither the State nor the municipalities control the manufacturing companies whose transparency reporting is embraced by this obligation. [ Ref. no. 209/2013 ]

Brief description of the Swedish Competition Act The Competition Act contains three prohibitions: • prohibition against anti-competitive cooperation • prohibition against the abuse of a dominant position • prohibition against anti-competitive sales activities by public entities. The Act also contains rules on the control of concentrations between undertakings.

Sanctions To stop ongoing infringements, the Swedish Competition Authority may decide on an obligation, with or without imposing fines for default. The Swedish Competition Authority may also apply to Stockholm City Court for the company to pay an administrative fine. The Swedish Competition Authority is authorised to issue so-called administrative fine orders. Members of a company’s management team may be subjected to a trading prohibition if they have participated in a cartel.   Following an action brought by the Swedish Competition Authority, Stockholm City Court may prohibit the central government, a municipal authority or a county council from engaging in a certain conduct in its sales activities, and set a fine for default. Municipal authorities and county councils may also be issued with a prohibition on running a certain activity. Following an action brought by the Swedish Competition Authority, Stockholm City Court may prohibit a concentration between undertakings or decide on less restrictive measures to prevent the adverse effects of the concentration.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

The views of our stakeholders on the implementation of the Competition Act It is stated in the Annual Governmental Appropriation Directions for 2013 that we are to report and comment on the views of our stakeholders regarding our law enforcement work. For the 21st year in a row, the Swedish Competition Authority has carried out a stakeholder survey specifically on the implementation of the Competition Act. The stakeholders asked to participate are: large companies (200 employees or more), SMEs (less than 200 employees), trade associations, municipal authorities and county councils, business lawyers and the group ’public authorities and agencies’. These findings are used when prioritising information initiatives and other activities for the coming year. The survey has been conducted by Institutet för kvalitetsindikatorer.

Effects All interest groups have a very positive attitude towards competition. A majority within all these groups feel that the Swedish Competition Authority actively counteracts serious violations of the Competition Act, and provides guidance for companies and authorities regarding how to act in matters relating to competition. In the group of trade associations, a significantly smaller number than in previous years have said they believe actors often intentionally violate the Competition Act. For the other groups, the results have remained relatively unchanged since 2012. In the group of smaller enterprises, more than half believe that some actors are consciously in breach of the Competition Act.

Attitude The general attitude towards the competition legislation is quite similar among the various interest groups. The proportion of positive respondents ranges from 47 per cent (smaller enterprises) to 68 per cent (trade associations). Last year, the proportion of respondents who were positive ranged from 45 per cent (public authorities and agencies) to 70 per cent (trade associations). In terms of the stakeholders’ views of how the Swedish Competition Authority communicates its prioritisation of cases, 70 per cent say that they think it is good for the Competition Authority to have a priority policy that is openly publicised. This is an increase of 7 per cent since 2012, when the question was first asked.

Confidence When taking into account all of the different interest groups, 56 per cent said that their level of confidence in the Swedish Competition Authority was ‘high’ or ‘very high’. The corresponding figure was 53 per cent in 2012. With the exception of the major companies, the proportion with a high level of confidence has increased in all stakeholder groups. The proportion with a high level of confidence is the lowest among small enterprises (40 per cent) and highest among business lawyers (69 per cent).

Assessment of the Swedish Competition Authority case management Every year, companies that are parties in cases relating to concentrations between undertakings and lawyers who represent these companies are asked to assess how their cases were handled. Among those who have assessed our case management of concentrations between undertakings, as many

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as 80 per cent give a positive overall opinion. In the last three years, no one has given a negative overall opinion. The major differences compared to previous years is seen partly in the assessment of staff competence, where the proportion of positive reviews has increased from 56 to 74 per cent, and partly in the assessment of the comprehensibility of information and decisions, where the proportion of positive reviews has decreased from 85 to 66 per cent.   Among those who have been in contact with us in other matters relating to competition, the proportion who gave a positive overall opinion went up from 36 to 42 per cent. The proportion of those who state their position as neutral or did not give their opinion was 25 per cent. The proportion who felt that it was quick and easy to get hold of us unfortunately fell from 71 to 56 per cent. When it comes to the view of information provided throughout the process, however, the proportion of positive opinions increased from 32 to 42 per cent. 56 per cent say that they would contact the Swedish Competition Authority again if they encountered a suspected violation of the competition rules. In 2012, 57 per cent stated that they would contact us again in the event of a competition-related issue.

Our stakeholders’ assessment of the Swedish Competition Authority’s case handling, per cent 2013 Concentrations between undertakings

2012

2011

pos % neg % pos % neg % pos % neg %

Made contact quickly/easily

89

3

94

0

91

5

Response

91

3

88

0

90

0

Competence and knowledge of staff

74

6

56

9

52

2

Understanding of your case/your query

60

9

65

6

65

2

Quick/simple information about what had happened with the case

49

9

68

0

66

7

Information about what is going to happen with the case

51

3

56

9

68

7

Decision was clear and well-reasoned

66

3

85

0

63

5

Overall opinion of how your case has been handled

80

0

77

0

71

0

Would you contact the Swedish Competition Authority again?

71

6

94

3

98

0

Other information about the implementation of the Competition Act

pos % neg % pos % neg % pos % neg %

Made contact quickly/easily

56

15

71

9

65

10

Response

60

12

65

11

69

9

Competence and knowledge of staff

47

11

47

17

50

10

Understanding of your case/your query

39

36

40

25

45

27

Quick/simple information about what had happened with the case

38

23

40

26

39

18

Information about what is going to happen with the case

42

26

32

23

41

23

Decision was clear and well-reasoned

32

28

27

38

25

34

Overall opinion of how your case has been handled

42

33

36

27

45

27

Would you contact the Swedish Competition Authority again?

56

27

57

21

71

16

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

IMPROVEMENT MEASURES One of the tasks of the Swedish Competition Authority is to be aware of obstacles to effective competition in public and private operations. We are to present proposals for the opening up of competition and for regulatory reform, and we must also follow up developments within the area of competition. We describe our proposals for improvement measures in reports, responses to official consultations and official communications to the government. We also provide comments and opinions for other public authorities that would like to know our views on a particular investigation or changes to the regulatory framework.

Reports In our reports we analyse how different markets function and present proposals for improvement measures.

Competition in Sweden 2013 The Swedish Competition Authority was commissioned by the government to present a current account of competition in Sweden and to present possible measures to promote competition. The report, which was published in December, is an account focusing on a selection of markets: construction, fuel sales and adult dental care.   According to the government appropriation directions, the report was to focus on markets with entry barriers and insufficient competition. Based on the regulations on anti-competitive sales activities by public entities, the report emphasises competition between public and private actors. The Swedish Competition Authority also presented a proposal for how to strengthen competition within the scope of the Act on System of Choice in the Public Sector (LOV). The assignment also included an analysis of the need for a deeper study, or supplementing of the evaluations conducted of earlier regu-

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

lation reforms. The latter part of this commission has been accounted for in an interim report to the government. [ Konkurrensen i Sverige 2013 – Interim report (2013:3), Final report (2013:10), Dnr 723/2012 ]

Unfair competition in public procurement The Swedish Competition Authority has looked at problems in the implementation of the procurement rules in cases where suppliers use various forms of illegal actions as a means of competition. The report describes how procuring authorities can use the procurement rules to counteract unfair competition. [ The Swedish Competition Authority report series 2013:6 ]

Competition in the financial service market – deposits, mortgages and funds The Swedish Competition Authority has investigated the market and competition conditions for some of the most important financial services for households; deposits, mortgages and funds. The report presents a number of proposed measures to increase competition, such as reducing lock-in effects and giving consumers more choice. [ The Swedish Competition Authority report series 2013:4 ]

Moving image – an analysis of the moving image market In collaboration with the Swedish Broadcasting Authority, the Competition Authority has mapped out the development on the moving image market over the last few years. The report is based on thorough interviews with relevant actors in the industry and a broader survey focusing on consumer behaviour and mobility. [ The Swedish Competition Authority report series 2013:2 ]

The retail trade monopoly on alcoholic drinks The Swedish Competition Authority has been requested to report to the European Commission twice a year regarding Systembolaget’s way of operating. In this year’s reports, we have given an account of the government investigation on the supervision of e-commerce and marketing of alcoholic drinks etc. (SOU 2013:50). [ Ref. no. 7/2013 ]

Official communications to the government During the year Swedish Competition Authority has submitted a communication to the government to ask for an expansion of its decision-making remit with regards to fees. This was in reference to violations of the cartel prohibition and abuse of a dominant position, for anti-competitive sales activities by public entities and for prohibited concentrations between undertakings. [ Ref. no. 304/2013 ]   In November, the Swedish Competition Authority also submitted a communication to follow-up on enforcement cases in the field of anti-competitive sales activities by public entities. [ Ref. no. 617/2013 ]

Responses to official consultations By commenting on proposals contained in reports and other inquiries we can become involved in and influence the preparation and drafting of proposals and decisions at an early stage. The Swedish Competition Authority has also participated in hearings and consultations arranged by the Swedish Energy Markets Inspectorate, the Ministry of Enterprise, Energy and Communications and the Ministry of Finance.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

The following is a selection of the responses to official consultations in the area of competition that we submitted in 2013.

The Swedish Competition Authority recommends free choice in the pension system In a statement to the Ministry of Finance, the Swedish Competition Authority commented on the report Vägval för premiepensionen (Decision time for premium pensions). In order to maintain as much freedom of choice as possible for the individual, the Swedish Competition Authority supports the alternative based on the current system. From a competition perspective, the new system should respect market conditions to the greatest extent possible, and the principles of product freedom and choice must essentially remain the same. [ Ref. no. 358/2013 ]

Price change assessment and entry regulations for district heating In statements with regard to district heating, the Swedish Competition Authority writes that entry regulation may be warranted, and that the proposed price change assessment could be appropriate, provided that entry prices are not affected by the threat of an upcoming price regulation. Comments have been sent to the Ministry of Enterprise, Energy and Communications in response to the Swedish Energy Markets Inspectorate reports Prisförändringsprövning och likabehandlingsprincipen för fjärrvärme (Price change assessment and the principle of equal treatment in district heating) and Reglerat tillträde till fjärrvärmenäten (Regulated access to district heating networks). [ Ref. no. 335/2013 and 336/2013 ]

Statement regarding liability for police supervision In a statement to the Ministry of Justice, the Swedish Competition Authority advices against the proposal to introduce compensation liability for police supervision. This proposal for event organisers would entail a competitive advantage for non-profit associations over limited companies. The Swedish Competition Authority emphasises that the form of association should not affect whether the event organiser becomes liable for police supervision. [ Ref. no. 294/2013 ]

The Swedish Competition Authority rejects electricity region proposal In a response to an official consultation by the Ministry of Enterprise, Energy and Communications on the report Analys av möjliga åtgärder för att minska prisområdesproblematiken i Sydsverige (Analysis of possible measures to reduce pricing issues in southern Sweden), the Swedish Competition Authority rejects the proposal of Svenska Kraftnät auctioning off hedging contracts for the southern electricity sector. The Swedish Competition Authority is of the opinion that if Svenska Kraftnät was to take over certain functions on the financial electricity market, it could lead to an unclear division of roles and inhibit incentives for the market to find a long-term solution for these problems. [ Ref. no. 43/2013 ]

Increased competitive neutrality is recommended within public service The Swedish Competition Authority has commented on the Public Service Committee report Nya villkor för Public service (New terms for Public Service) (SOU 2012:59), in preparation for the permit period starting in 2014. In response to an official consultation by the Ministry of Culture, the Swedish Competition Authority stresses the importance of public service operations

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being regulated to promote development in the area of radio and television, without distorting competition. The Competition Authority also emphasised that the matter of public service ought to be subjected to an overall analysis to ensure clear, transparent and up-to-date regulations. [ Ref. no. 607/2012 ]

The Swedish Competition Authority is critical of subsidised housing construction In response to an official consultation by the government: Boverkets översyn av bostadsförsörjningslagen (The Swedish National Board of Housing review of the Act on Municipal Responsibility for Housing Provision), the Swedish Competition Authority has commented on the proposal to replace the above-mentioned act with a new act regulating the municipal responsibility for planning housing. The Swedish Competition Authority is critical of the municipalities being given an opportunity to take advantage of the EU state aid rules. [ Ref. no. 562/2012 ]

Statement on the investigation concerning more effective supervision of competition The Swedish Competition Authority has commented on the report Effektivare konkurrenstillsyn (More effective supervision of competition) (SOU 2013:16), emphasising that these proposals would have a positive impact on the national economy and the consumers. The Swedish Competition Authority welcomes the chance to temporarily suspend a deadline when parties in investigations of concentrations between undertakings do not submit requested material. The statement also refers to the proposal to introduce a queuing system in the Swedish leniency programme and a legislative regulation of the possibility for an audit of digital material from site investigations at the Swedish Competition Authority premises. [ Ref. no. 200/2013 ]

Statement regarding EU proposal on electronic communication The Swedish Competition Authority has made a statement regarding the proposal by the European Commission for a new regulation on an internal European market for electronic communications. Objections to this proposal were in respect of the need for regulatory measures to promote the development of pan-European telecom actors, and the proposal for consideration of the global competitiveness of the EU when deciding whether to pre-regulate a market. [ Ref. no. 593/2013 ]

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

KNOWLEDGE The Swedish Competition Authority is to promote a competition-oriented approach and provide appropriate information for companies and other concerned parties regarding important decisions, our implementation of the rules and the content of these rules. Over the course of the year, we have conducted a number of different initiatives to disseminate knowledge about competition issues to various stakeholders.

Raised awareness about bidding cartels During 2013 we have continued to provide information on how cartels can come about, how they can be discovered and how the Swedish Competition Authority can be tipped off. We have held a number of lectures on the subject. We have also increased our collaboration with the Swedish Tax Agency and the National Anti-Corruption Unit, in order to obtain tip-offs regarding bidding cartels.

Focus on counteracting unfair competition The Swedish Competition Authority has collaborated with other authorities and organisations in different contexts. Op-ed articles have been published, and our co-workers have participated in conferences and seminars.   In November, the Swedish Tax Agency organised a meeting on the theme “Competition on fair terms” with the subtitle “White-market jobs – a condition of welfare and competition on equal terms” The discussion was intended to make citizens and companies aware of the problems with black-market labour and how it affects competition.   To tackle issues that lie outside the jurisdiction of the Swedish Competition Authority, but which still affect competition, we often cooperate with other authorities such as the Swedish Tax Agency, the Economic Crime Authority, the Police and the National Anti-Corruption Unit.

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Interactive guide The Swedish Competition Authority has developed an interactive guide with which companies planning to cooperate can easily test whether it is possible to do so without violating any competition regulations. The guide is available at the Swedish Competition Authority website, www.konkurrensverket.se/ vagledning. The Swedish Competition Authority has previously produced a film “Be first – a film about leniency”, which was primarily directed towards companies and business leaders.

Almedalen and the Quality Fair During this year’s Almedalen Week in Gotland, the Swedish Competition Authority organised three of its own seminars for the first time. The overall themes of these seminars, which were held between 3–4 July, were welfare and competition. The panel discussions were focused on the following topics • Bidding cartels, black-market labour and corruption – on unfair competition in public procurements. • The public sector must not incapacitate private companies – on how public actors should conduct sales appropriately. • Free choice in rural areas – how does it work?

”I hope that more and smaller companies will be able to submit tenders in public procurements. The new guide is a good way to have more companies compete for contracts.”

The Swedish Competition Authority has also organised three mini-seminars at the Quality Fair in Göteborg this year. These seminars were held on 20 November, on similar themes to the ones in Almedalen. Topics on the agenda were procurement fines, sales activities by public entities and competition to promote a more effective construction process.

Electronic newsletter Konkurrens (Competition) Our electronic newsletter is issued once a month and provides our 1,800 subscribers with current information about what is happening in the area of competition.

Konkurrensverket.se The website, with its approximately half a million visitors per year, is the Swedish Competition Authority’s primary channel for external information. The website also contains an online quiz, where anyone who is interested can test their knowledge of competition and procurement.

Social media The presence of the Swedish Competition Authority in social media is a complement to the information and communication channels available via the website. Among other tools, we have been using Twitter in our external communication. Twitter has been a supplementary channel to communicate news, make addresses, advertise available positions, and generate attention to divert traffic to the other communication channels of the Swedish Competition Authority. The Swedish Competition Authority has also uploaded video clips and films from Competition Authority events on YouTube.

Ungkonsument.se The Swedish Competition Authority has continued the collaboration with the Swedish Consumer Agency on our joint website ungkonsument.se. Over the year, the website has been evaluated and developed. To reach young people and spread awareness of how to become an active and conscious consumer, we also have a mobile application developed for Facebook.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Op-ed articles and addresses Competition issues have been relevant in many different contexts throughout 2013. The Swedish Competition Authority’s staff members have participated in debates on competition, public sales activities, unfair competition in public procurement, but also relating to sporting events. Trade associations, municipalities, universities and other institutions are welcome to engage our staff as speakers. Op-ed articles and addresses have been published on the website.

Our stakeholders’ knowledge of the Swedish Competition Act It was stated in our Annual Governmental Appropriation Directions for 2013 that we should report and comment on our stakeholders’ knowledge of the rules and regulations, including their knowledge of the Swedish Competition Act. For the 21st consecutive year we conducted a stakeholder survey. The stakeholders asked to participate are: large companies (200 employees or more), SMEs (less than 200 employees), trade associations, municipal authorities and county councils, business lawyers and the group ’public authorities and agencies’. These findings are used when prioritising information initiatives and other activities for the coming year. The survey has been conducted by Institutet för kvalitetsindikatorer.

Awareness All interest groups continue to have a high level of awareness of the Swedish Competition Act. In the large companies group as well as the municipalities and county councils group, awareness has increased by 20 percentage points. For SMEs, the proportion who says they have heard of the Competition Act has increased from 67 to 83 per cent. The results had also improved for certain public authorities and agencies that have seen a downwards trend in previous years. For all the groups, awareness is somewhere between 83 and 95 per cent. The proportion who are aware that the Swedish Competition Authority is responsible for the application of the Competition Act has increased among public authorities and agencies and among municipalities and county councils, but decreased in the other groups. An average 59 per cent are aware of this fact. The lowest level of awareness is found among smaller companies, where it has decreased from 49 to 36 per cent. The highest level of awareness is still found among business lawyers, at 87 per cent (93 per cent in 2012).

Knowledge We consider that an average level of knowledge means that the respondent must have answered five out of six questions correctly. In total, 58 per cent achieved at least 5 correct answers. Knowledge of the provision on anti-competitive sales activities by public entities, which was introduced in 2010, has increased to 63 per cent (60 per cent in 2012 and 56 per cent in 2011). The fact that companies may be completely or partially exempt from sanctions if they participate in exposing an illegal cartel, however, is something that only 43 per cent answered correctly, which is a reduction from 2012, when 54 per cent knew the correct answer.

Average to high level of knowledge about the Competition Act, per cent Business lawyers

28

2013

2012

2011

75

81

74

Trade associations

74

76

70

Companies with 200 or more employees

59

59

60

Municipalities and county councils

53

53

68

Companies with less than 200 employees

49

52

51

Public authorities and agencies

38

43

56

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Com pe t i t ion

Collaboration The Swedish Competition Authority strives towards effective collaboration with other authorities, including county administrative boards and other operators. We are also to consult with authorities that will be affected by the measures that we propose.

Consultations implemented in the field of competition Several authorities, committees and investigators have a duty to consult with the Swedish Competition Authority, in accordance with instructions, letters of appropriation or directives. The following describes some of the formal consultations concerning competition issues that have been implemented in 2013.

Swedish Post and Telecom Authority The European Parliament and Council have, through directives, decided that national regulation authorities within the EU are to analyse markets within the area of electronic communication, identify businesses with significant market influence and make decisions regarding the obligations to be imposed on these businesses. In Sweden, the Post and Telecom Authority (PTS) is the agency that has this responsibility. According to the Electronic Communications Act, PTS is to acquire written statements from the Swedish Competition Authority in respect of market analyses and decisions regarding obligations. This happened three times in 2013. The Swedish Competition Authority has conducted a fact check and submitted opinions on the National Audit Office report “The government and the telecom market”. This report contains conclusions and recommendations with regard to the government, the Swedish Post and Telecom Authority, and Kammarkollegiet.

The Swedish Consumer Agency The Swedish Competition Authority has a collaborative agreement with the Swedish Consumer Agency. The aim of the agreement is to further develop and promote cooperation between the two agencies which, in various different ways, leads to benefits to the consumer.

The Swedish Agency for Public Management Following the deregulation of the pharmacy market, the Swedish Agency for Public Management was commissioned by the government to monitor and evaluate this market. The investigation continued until June 2013 and the Swedish Competition Authority has participated in several consultation meetings.

The Swedish Energy Markets Inspectorate The Swedish Competition Authority has consulted with the Energy Markets Inspectorate in a number of the Inspectorate’s investigations within the area of energy. Consultations have concerned models for the assessment of price changes and entry regulations for district heating, the effects of the introduction of electricity regions, the exposure of the electricity measurement market to competition, variable pricing for electricity and tasks concerned with the regulation of town gas. The Swedish Competition Authority has also participated in the Inspectorate’s Energy Market Council.

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The Swedish Transport Agency According to its directives, the Swedish Transport Agency is to collaborate with the Competition Authority. We have responded to several referrals, and authority representatives have met on two occasions for information and consultation meetings.

The Swedish Broadcasting Authority In 2013, the Swedish Broadcasting Authority had two government commissioned assignments where consultation with the Competition Authority was required. The first was the future broadcasting space for digital terrestrial television in relation to mobile broadband service, and the second was drawing up an even list for certain broadcasts. A joint report on the development on the moving image market has also been published. [ The Swedish Competition Authority report series 2013:2 ]

”The Swedish Competition Authority strives towards effective collaboration with other authorities.”

Collaboration with the county administrative boards The county administrative boards work towards effective competition which benefits consumers in their respective counties. They are to provide information on competition issues and notify the Swedish Competition Authority of situations where there is a suggestion that there has been an infringement of the competition rules. The county administrative boards shall also pay attention to aspects that are relevant to competition in their work, as shall other regional and local bodies. It is the task of the Swedish Competition Authority’s to provide the boards with the information and support they need to be able to carry out their work. In December, some of our co-workers participated in a meeting where we informed the Gotland county administrative board, the Swedish National Heritage Board and Region Gotland about current competition and procurement issues. We have also distributed reports, newsletters and press releases to the county administrative boards throughout the year. They have access to our decisions and other information via the website.

Other collaboration In 2013 we collaborated with several other authorities affected by measures proposed by the Competition Authority or which have asked for expert support in their work. Authorities that we have collaborated with include: the Swedish National Board of Housing, Building and Planning, the Swedish Energy Agency, the Legal, Financial and Public Procurement Agency (Kammarkollegiet), the National Board of Health and Welfare, the National Anti-Corruption Unit, the Swedish Enforcement Authority, the Swedish Tax Agency, the Swedish Economic Crime Authority, the Swedish Work Environment Authority, the supervisory committee on munitions exports, the LFV Group, Growth Analysis, the Swedish Financial Supervisory Authority, the Swedish Transport Administration and the Dental and Pharmaceutical Benefits Agency.   In addition, the Swedish Competition Authority’s experts also participate in public investigations, including the investigation concerning more effective supervision of competition, the group evaluating broadband strategy, the investigation into certain issues concerning pricing, availability and market conditions within the medical and pharmaceutical sectors, the investigation on the organisation of the railway, the investigation concerning modern regulation of passenger and goods transport by rail and the investigation on possible future municipal legislation.

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Public procurement LAW ENFORCEMENT AND SUPERVISION Supervisory activities have been prioritised and the focus of our compliance work was on the illegal direct award of contracts. This year we also focused specifically on court actions for procurement fines.   This year we submitted 19 applications for procurement fines on our own initiative (facultative) and four applications for mandatory procurement fines to the Administrative Court. In addition, we handled 89 other supervisory cases in accordance with the public procurement laws. We have also carried out supervision in accordance with the Act on System of Choice in the Public Sector.

”Public procurement plays an important strategic role and affects how society’s resources are used in the best and most effective manner.”

Applications for procurement fines Since 2010, the Swedish Competition Authority has been allowed to bring actions to court requesting the imposition of a procurement fine on municipal authorities, county councils and government authorities that have illegally awarded a direct contract. We can apply for a procurement fine on our own initiative (‘facultative application’). The Authority must also apply for procurement fine (‘mandatory application’) in the event of a breach of a standstill period or prolonged standstill period. This still applies when a court, following an appeal regarding the validity of an agreement, has determined that the contract by right ought to have been declared ineffective, but it is allowed to remain in place due to overriding reasons relating to the public interest.

Proposals for more effective public procurement We have submitted proposals for measures where legislation and established practice counteract effective public procurement. We have done this through official communications to the government and responses to official consultations, such as our comments on the report Effektivare konkurrenstillsyn (More effective supervision of competition). [ Ref. no. 200/2013 ]

Official communications to the government The Swedish Competition Authority has, on its own initiative, submitted Erfarenheter av upphandlingsskadeavgiftsärenden (Experiences from procurement fine cases) to the government regarding the cases that up until September 2013 have led to procurement fines. The communication includes a description of the Authority’s work relating to procurement fine cases and case statistics. [ Ref. no. 532/2013 ]

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Pu blic proc u r em e n t

Supervisory projects Unfair competition in public procurement In 2013, the Swedish Competition Authority has taken the project on unfair competition in public procurements one step further. The report Osund konkurrens i offentlig upphandling – Om lagöverträdelser som konkurrensmedel (Unfair competition in public procurement, on illegal actions as a means of competition) was presented in connection with the Almedalen Week in Gotland. The Swedish Competition Authority has looked at problems in the application of the procurement regulations, in cases where suppliers use various forms of illegal actions as a means of competition. Focusing on bidding cartels, black-market labour and corruption, the Swedish Competition Authority highlights the difficulties in the application of the law that contracting authorities or entities might face when eliminating tenderers and abnormally low tenders. [ Ref. no. 355/2012 and Report 2013:6 Osund konkurrens i offentlig upphandling – Om lagöverträdelser som konkurrensmedel ]

Appeals in public procurement The Swedish Competition Authority published the report Överprövningar av offentliga upphandlingar – Siffror och fakta (Appeals in public procurement – facts and figures). This report gives an account of the appeals regulations and the available statistics on procurements where appeals have been lodged. Against the background of appeals being a potential problem for procuring agencies, the Swedish Competition Authority gives suggestions for how to make the process more effective, thus reducing the negative effects of an appeal. [ Ref. no. 356/2013 ]

Procurement of financial services During the year, the Swedish Competition Authority has completed a project on the procurement of financial services. Among other things, the Swedish Competition Authority has reviewed how various municipalities apply the procurement legislation exemption for financial services. The intention has been to clarify which services this applies to, and under which circumstances they may be exempt from public procurement as well as to spread knowledge of when financial services must go through procurement. [ Ref. no. 618/2012 ]

Other supervisory projects The Swedish Competition Authority has initiated a project on framework agreements. The purpose of this project is to look at how framework agreements are applied in practice, and seek to define issues relating to the application of procurement legislation that a procuring agency might encounter when dealing with suborders. The Swedish Competition Authority has also started a project on the procurement of IT systems and associated services. This project is intended to clarify aspects of the procurement legislation and limitations for public procurement of IT systems and associated services. During the year, the Swedish Competition Authority has continued its investigation to which extent state-owned enterprises adhere to the procurement legislation and feel obligated to do so.

Measures for better compliance In 2013, the Swedish Competition Authority participated in a number of seminars and meetings with representatives of procuring agencies and suppliers around the country, for example at the Almedalen Week in July and the Quality Fair in Göteborg in November. The purpose has been to provide

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information on the legislation and our supervisory task, particularly focusing on measures against unhealthy competition and on the regulations regarding procurement fines.

The Swedish Competition Authority monitors legal developments The Swedish Competition Authority has been assigned to monitor and report on both national and international developments within public procurement. Our database of court rulings contains judgments from administrative courts, administrative courts of appeal and the Supreme Administrative Court. Since 2010 it has been mandatory for these courts to send us all of the judgments and final decisions in procurement cases to be published in our database. The database also contains rulings from the European Court of Justice.

Public procurement and small businesses The Swedish Competition Authority is part of a network of authorities that is trying to make it easier for small and medium-sized enterprises (SMEs) to participate in public procurements. This network is a forum for the authorities to exchange experiences and information about their respective work in this field. As a way of further increasing the possibilities of SMEs to participate in public procurements, the network keeps a continuous dialogue with representatives of trade and procurement organisations.   The Swedish Competition Authority has developed an interactive guide through which companies planning to cooperate can easily test whether it is possible to do so without violating any competition regulations. The guide is available at the Swedish Competition Authority website. [ Dnr 493/2012, 332/2013 ]

The Council for Public Procurement Issues The Council for Public Procurement Issues provides important support in the Swedish Competition Authority’s work to supervise public procurement. The Council is a forum for the exchange of experiences concerning both general procurement issues and the need for measures to support the development of effective public procurement. Members of the Council are appointed by the Swedish Competition Authority.

Members of the Public Procurement Issues Council

(01/07/2013)

Mats Bergman Professor of Economics, Södertörn University

Karin Peedu Head of Unit, Stockholm County Council Procurement

Björn Bergström Head of procurement at the Riksbank (the Swedish central bank), and chair of the Swedish Association of Public Purchasers (SOI)

Ted Stalte Procurement strategist, City of Stockholm

Ulrica Dyrke Expert, Swedish Federation of Business Owners Johanna Falk Head of procurement, Atea Sverige AB Charlotta Lindmark Chief Legal Officer, Swedish Transport Administration

Andrea Sundstrand Solicitor and Doctor in Public Law, Stockholm University Dan Sjöblom Director-General, chair of the Council, Swedish Competition Authority Magnus Johansson Acting Head of Unit, secretary of the Council, Swedish Competition Authority

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Pu blic proc u r em e n t

Applications for procurement fines in 2013 Application for a procurement fine – own initiative The following is a list of all of the applications for procurement fines that the Swedish Competition Authority submitted to the administrative court on its own initiative in 2013. AUTHORITY

PROCUREMENT FINE REQUESTED

REASON

Karolinska Institutet Ref. no. 24/2013

SEK 200,000

Direct procurement of leasing agreements for office equipment, at a value of approximately SEK 2.7 million.

Sveriges Radio AB Ref. no. 48/2013

SEK 200,000

Direct procurement of staff party, worth approximately SEK 2.7 million.

SJ AB Ref. no. 57/2013 and 58/2013

Total of SEK 8.5 million

Direct procurement of two cleaning service agreements, at a value of approximately SEK 116 million.

Sveriges Television AB Ref. no. 85/2013 and 86/2013

Total of SEK 210,000 million

Direct procurement of event venue, food and drink as well as party planning, at a total value of approximately SEK 2.7 million.

Statens Servicecenter Ref. no. 330/2013 and 331/2013

Total of SEK 1.45 million

Direct procurement of consulting services, at a value of approximately SEK 20 million.

Government authority/company

Municipalities/county councils/municipal companies

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Lejonfastigheter AB Ref. no. 23/2013

SEK 135,000

Direct procurement referring to the reconstruction and interior of a restaurant venue. The value of the contract is approximately SEK 1.8 million.

Karlstad Municipality Ref. no. 54/2013

SEK 230,000

Direct procurement of two lorries, at a total value of approximately SEK 3 million.

Täby Municipality Ref. no. 440/2013 and 454/2013

Total of SEK 5 million

Direct procurement of contract work, at a value of approximately SEK 146 million.

Haninge Bostäder Aktiebolag Ref. no. 461/2013

SEK 10 million

Direct procurement of construction contracts, worth approximately SEK 136 million.

Växjö Municipality Ref. no. 487/2013 Ref. no. 488/2013 Ref. no. 489/2013 Ref. no. 490/2013 Ref. no. 491/2013

Total of SEK 325,000

Direct procurement of crushing services, installation of traffic signal system, a brush shredder, sanitation facilities and a street sweeper at a total value of approximately SEK 3.7 million.

Stockholm County Council, Ref. no. 765/2013

SEK 3 million

Direct procurement of services as well as copiers and printers, to a value of just over SEK 40 million.

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Pu blic proc u r em e n t

Application for a procurement fine – mandatory The following is a list of all of the mandatory applications for procurement fines that the Swedish Competition Authority submitted to the administrative court in 2013. AUTHORITY

PROCUREMENT FINE REQUESTED

REASON

Swedish Post and Telecom Authority Ref. no. 101/2013

SEK 75,000

Contract was approved due to overriding reasons relating to the public interest.

Police Authority in Skåne Ref. no. 636/2013

SEK 75,000

Contract was approved due to overriding reasons relating to the public interest.

Trollhättan Municipality Ref. no. 253/2013

SEK 36,000

Contract was approved, despite being in breach of the rules regarding standstill periods.

Region Gotland Ref. no. 462/2013

SEK 250,000

Contract was approved due to overriding reasons relating to the public interest.

Government authorities

Municipalities/county councils

The Swedish Competition Authority’s basis for calculating the amount of the procurement fine • A procurement fine shall amount to at least SEK 10,000 and no more than SEK 10 million. The fine may not exceed 10 per cent of the contract value. When considering the amount of the procurement fine, special consideration shall be given to how serious the breach is. • The size of a procurement fine for the illegal direct award of a contract should be calculated on the basis of the contract value. After that, an assessment must be made of whether there are any mitigating or aggravating circumstances in the individual case that justify a reduction or increase of the fine. This method promotes uniformity and predictability in the enforcement of the law. • The illegal direct award of a contract is one of the most serious infringements of the Public Procurement Act. According to the Swedish Competition Authority, procurement fines should therefore as a rule amount to 5–10 per cent of the contract value. For most applications made on our own initiative, the Swedish Competition Authority has requested a fine corresponding to approximately seven to eight per cent of the contract value.  

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Court decisions and judgments in 2013 The following is a list of all court decisions adopted during 2013 where the Swedish Competition Authority has applied on its own initiative for procurements fines to be imposed. SWEDISH COMPETITION AUTHORITY

ADMINISTRATIVE COURT

ADMINISTRATIVE COURT OF APPEAL

SUPREME ADMINISTRATIVE COURT

26/09/2012 (Jönköping 748-12) The Swedish Competition Authority’s application was rejected, in reference to the fact that the procurement commenced before the regulations came into force. The judgment was appealed by the Swedish Competition Authority.

17/05/2013 (5766-12) The Swedish Competition Authority’s application was rejected.

Borlänge Municipality 14/06/2012 Ref. no. 375/2012 Requested amount: SEK 40,000

12/04/2013 (Falun 2643-12) The Swedish Competition Authority’s request was granted.

Karolinska Institutet 06/02/2013 Ref. no. 24/2013 Requested amount: SEK 200,000

15/04/2013 (Stockholm 2916-13) The Swedish Competition Authority’s request was granted.

The Swedish Agency for Economic and Regional Growth 26/10/2012 Ref. no. 609/2012 Requested amount: SEK 45,000

22/04/2013 (Stockholm 22373-12) The Swedish Competition Authority’s request was granted.

Sveriges Television AB 06/02/2013 Ref. no. 85/2013 Requested amount: SEK 95,000

29/04/2013 (Stockholm 2922-13) The Swedish Competition Authority’s request was granted.

Sveriges Television AB 06/02/2013 Ref. no. 86/2013 Requested amount: SEK 115,000

29/04/2013 (Stockholm 2987-13) The Swedish Competition Authority’s request was granted.

Swedish Migration Board 17/06/2011 Ref. no. 435/2011 Requested amount: SEK 5.5 million

14/02/2012 (Linköping 3834-11) The Swedish Competition Authority’s request was granted. The judgment was appealed by the Swedish Migration Board.

Länstrafiken i Jämtlands län AB 29/08/2011 Ref. no. 553/2011 Requested amount: SEK 1.9 million

21/05/2013 (Härnösand 2591-11) The case was dismissed when the Swedish Competition Authority withdrew its application.

Sigtuna Municipality 29/08/2011 Ref. no. 554/2011 Requested amount: SEK 850,000

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24/04/2012 (Uppsala 4495-11) The Swedish Competition Authority’s application was rejected, in reference to the fact that the procurement commenced before the regulations came into force. The judgment was appealed by the Swedish Competition Authority.

23/05/2013 (Stockholm 3103-12) The case was dismissed when the Swedish Competition Authority withdrew its application.

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Pu blic proc u r em e n t

SWEDISH COMPETITION AUTHORITY

ADMINISTRATIVE COURT

ADMINISTRATIVE COURT OF APPEAL

16/03/2012 (Uppsala 2298-11) The Swedish Competition Authority’s application was rejected, in reference to the fact that the procurement commenced before the regulations came into force. The judgment was appealed by the Swedish Competition Authority.

23/05/2013 (Stockholm 2291-12) The case was dismissed when the Swedish Competition Authority withdrew its application.

SUPREME ADMINISTRATIVE COURT

Akademiska hus Uppsala AB 03/05/2011 Ref. no. 348/2011 Requested amount: SEK 10 million

Sveriges Radio AB 21/02/2013 Ref. no. 48/2013 Requested amount: SEK 200,000

28/05/2013 (Stockholm 4303-13) The Swedish Competition Authority’s request was granted.

The Swedish Defence Materiel Administration (FMV) 19/01/2012 Ref. no. 832/2011 Requested amount: SEK 600,000

25/07/2012 (Stockholm 1271-12) The Swedish Competition Authority’s request was granted. The judgment was appealed by FMV.

11/04/2013 (Stockholm 5426-12) FMV’s application was rejected. FMV appealed this decision.

07/06/2013 (3203-13) Leave to appeal was not granted.

11/04/2013 (Stockholm 5427-12) FMV’s application was rejected. FMV appealed this decision.

07/06/2013 (3205-13) Leave to appeal was not granted.

11/04/2013 (Stockholm 5452-12) FMV’s application was rejected. FMV appealed this decision.

07/06/2013 (3208-13) Leave to appeal was not granted.

The Swedish Defence Materiel Administration (FMV) 19/01/2012 Ref. no. 833/2011 Requested amount: SEK 220,000

25/07/2012 (Stockholm 1281-12) The Swedish Competition Authority’s request was granted. The judgment was appealed by FMV.

The Swedish Defence Materiel Administration (FMV) ) 19/01/2012 Ref. no. 834/2011 Requested amount: SEK 240,000

25/07/2012 (Stockholm 1273-12) The Swedish Competition Authority’s request was granted. The judgment was appealed by FMV.

Karlstads Municipality 23/01/2013 Ref. no. 54/2013 Requested amount: SEK 230,000

17/07/2012 (Karlstad 292-13 E) The Swedish Competition Authority’s request was granted.

Täby Municipality 15/08/2013 Ref. no. 440/2013 Requested amount: SEK 2.45 million

30/09/2013 (Stockholm 19811-13) The Swedish Competition Authority’s request was granted.

Täby Municipality 15/08/2013 Ref. no. 454/2013 Requested amount: SEK 2.55 million

30/09/2013 (Stockholm 19810-13) The Swedish Competition Authority’s request was granted.

Lejonfastigheter AB 14/03/2013 Ref. no. 23/2013 Requested amount: SEK 135,000

15/10/2013 (Linköping 1785-13) The Swedish Competition Authority's request was granted.

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Statements made to the Court During the course of the year, the Swedish Competition Authority has submitted two statements to courts that have requested input into various cases.

•T  he Administrative Court in Göteborg asked the Swedish Competition Authority to make a statement in legal issues of fundamental importance to the construction contracts entered by the City of Göteborg procurement company. The statement concerns the enforcement of the regulation on rejecting a tender due to an abnormally low price, and how a decision to allow the procurement to be terminated should be worded. The statement clarifies that the tenderer must be able to prove that the low price is a serious tender. [ Ref. no. 83/2013 ] • The Administrative Court in Jönköping has asked the Swedish Competition Authority to make a statement in the matter of whether the National Union of the Swedish Sami People (SSR) should be considered a publically governed agency, and therefore subject to the Public Procurement Act (LOU). In reference to the available investigation in the case being limited, the Swedish Competition Authority has refrained from making a substantial statement, but emphasises that the assessment must be carried out based on the case law referred to in the statement. [ Ref. no. 112/2013 ]

Brief description of Swedish procurement regulations Public procurement refers to the purchase of goods, services or works contracts by a public body, such as a government agency, or a municipal authority or certain public companies. Some private companies within the ‘utilities sectors’ (i.e. water, energy, transport and postal services) may also be subject to the procurement rules. The fundamental principles that must be observed in all public procurements are: • non-discrimination • equal treatment • transparency and predictability • proportionality • mutual recognition. Following an application made by a supplier, a general administrative court may decide that the procurement process has to be recommenced. The court may also decide that a tender may only be awarded after adjustments have been made. The supplier can request damages at a general court if, following the award of a contract, a supplier considers that it has suffered loss owing to the procurement not having been conducted properly. An agreement between a contracting authority and a supplier may be declared ineffective by a court following an application from a supplier.

Procurement fines Since 15 July 2010, the Swedish Competition Authority has been entitled to take contracting authorities and entities, such as for example municipal authorities, county councils and government authorities to court if they breach the rules on the illegal direct award of a contract and request that they pay a procurement fine. The Swedish Competition Authority may also apply for a procurement fine in the event of a breach of a standstill period or suspension.

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Views of our stakeholders on the supervision of public procurement It is stated in our Annual Governmental Appropriation Directions for 2013 that we should report and comment on the views of our stakeholders regarding our supervision of public procurement. This was the seventh consecutive year that we conducted a stakeholder survey focusing solely on issues relating to public procurement. The stakeholders asked to participate are: large companies (200 employees or more), SMEs (less than 200 employees), trade associations, municipal authorities and county councils, business lawyers and the group ‘public authorities and agencies’. These findings are used when prioritising information initiatives and other activities for the coming year. The survey has been conducted by Institutet för kvalitets­ indikatorer.

Effects A majority within all these groups feel that the Swedish Competition Authority provides guidance for companies and authorities regarding how to act in matters relating to public procurement. More than half also feel that the Swedish Competition Authority actively counteracts serious violations of the procurement legislation. At the same time, the same proportion feels that actors often or quite often break the rules.

Attitude When it comes to attitudes towards the regulations on public procurement, the general opinion is relatively similar within the various interest groups. The proportion of positive respondents ranges from 27 per cent (business lawyers) to 44 per cent (public authorities and agencies). Over the last three years, the attitude towards the regulations has remained more or less the same, and close to 40 per cent say that they are neither positive nor negative. In terms of the stakeholders’ view of how the Swedish Competition Authority communicates

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its prioritisation of cases, 70 per cent say they think it is good for the Competition Authority to have a priority policy that is openly advertised. This is an increase of 7 percentage points compared to 2012, when the question was first asked.

Confidence When taking into account all of the different interest groups, 56 per cent said that their level of confidence in the Swedish Competition Authority was ‘high’ or ‘very high’. The corresponding figure was 53 per cent in 2012. With the exception of the major companies, the proportion with a high level of confidence has increased in all stakeholder groups. The proportion with a high level of confidence is the lowest among small enterprises (40 per cent) and highest among business lawyers (69 per cent).

Assessment of the Swedish Competition Authority case management This was the sixth consecutive year in which we have conducted a survey among the people who have contacted us about procurement issues. Over half gave a positive overall opinion of the way we handled their cases, and in the assessment of staff competence and knowledge, the proportion of positive notes increased from 57 to 65 per cent. When it comes to communicating comprehensible information or decisions, the proportion of negative responses has decreased from 27 to 9 per cent. In this year’s survey, we asked how likely it was that the respondent would contact the Swedish Competition Authority again if they encountered a suspected violation of the procurement rules. 69 per cent answered that they most likely would contact the Swedish Competition Authority again.

Our stakeholders’ assessment of the Swedish Competition Authority’s case handling, per cent 2013 Procurement cases

42

2012

2011

pos % neg % pos % neg % pos % neg %

Made contact quickly/easily

66

7

71

12

66

14

Response

71

5

75

6

75

11

Competence and knowledge of staff

65

9

57

7

69

7

Understanding of your case/your query

54

14

51

22

61

14

Quick/simple information about what had happened with the case

43

19

45

24

48

20

Information about what is going to happen with the case

38

14

44

19

48

21

Decision was clear and well-reasoned

34

9

31

27

47

19

Overall opinion of how your case has been handled

56

14

51

21

65

19

Would you contact the Swedish Competition Authority again?

69

9

77

9

76

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Pu blic proc u r em e n t

Supervision of the Act on System of Choice in the Public Sector The Swedish Competition Authority is the supervisory authority for the Act on System of Choice in the Public Sector. The Act originally only applied to municipal authorities and county councils when systems of choice for health care and social services were being introduced, but now it also applies to other actors. In 2010, it became mandatory for county councils to introduce systems of choice for primary health care services. Our supervision relates to the system of rules, while the organisations involved are responsible for quality issues concerning their operations. Over the year, the Swedish Competition Authority has completed three supervision cases. Within the 2013 government commission, the Swedish Competition Authority has supervised free choice systems within primary health care and specialist outpatient care. Focusing on home care, we have evaluated the competition conditions within the municipal systems of choice. Our results are presented in the reports Kommunernas valfrihetssystem – med fokus på hemtjänst (Municipal systems of choice – focusing on home-help services) and Konkurrens på likvärdiga villkor i kommunernas valfrihetssystem – Pilotstudie i tre kommuner med valfrihetssystem inom hemtjänsten (Competition on equal terms in the municipal system of choice – a pilot study of three municipalities with free choice in home-help services).

New strategy for the supervision of the Act on System of Choice in the Public Sector In 2013, Swedish Competition Authority adopted a new strategy for the supervision of compliance with the Act on System of Choice in the Public Sector. The strategy is designed specifically around the extended mandate given to the Swedish Competition Authority in this area. [ Adm 75/2013 ]

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Supervision projects The Swedish Competition Authority has been working on a wider mapping of the choice systems. Part of the Swedish Competition Authority’s commission involves increasing knowledge about the freedom of choice systems and identifying barriers to effective competition. As part of our work to increase knowledge, the Swedish Competition Authority has conducted a preliminary study of the freedom of choice within the Employment Service. The report shows that the supervision of free choice systems and their suppliers needs to be developed further. [ The Swedish Competition Authority report series 2013:7, ref. no. 311/2013 ] The Swedish Competition Authority has also studied competition conditions between external suppliers and the municipalities’ own administration. Our results are presented in the report Konkurrens på likvärdiga villkor i kommunernas valfrihetssystem – Pilotstudie i tre kommuner med valfrihetssystem inom hemtjänsten (Competition on equal terms in the municipal system of choice – a pilot study of three municipals with free choice in home-help services). [ The Swedish Competition Authority report series 2013:8, ref. no. 262/2013 ] In a case concerning the Jämtland County Council, the Swedish Competition Authority has established that the Act on System of Choice in the Public Sector cannot be applied with regard to differences in compensation levels between municipal administration and external suppliers. Within the scope of this decision, the importance of transparency and clarity of documentation was also emphasised. [ Ref. no. 348/2013 ]

Free choice in electronic identification As of 1 July 2013, the Act (SFS 2013:311) on System of Choice regarding services for electronic identification is in force. This legislation applies when procuring agencies choose to implement electronic IDs in their online services, and connect to a system for secure electronic identification provided by the Swedish eIdentification Board.

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Improvement measures Purchases covered by the procurement regulations are estimated to correspond to 16–19 per cent of the gross national product, or around SEK 560–670 billion per year. Public procurement thus represents a large and important part of the national economy. Public procurement may also promote better preconditions for SMEs to enter and grow in various markets. In light of this, the Swedish Competition Authority has, throughout the year, and in different ways and on a number of occasions, presented concrete improvement measures directed at both the legislator and public procurers. As part of our work we are constantly considering how proposals can help to make it easier for SMEs to participate in public procurements. We describe our proposed measures in reports, responses to official consultations and official communications to the government.

Reports Osund konkurrens i offentlig upphandling

Unfair competition in public procurement

med tillämpningen onkurrensverket har undersökt problem använder olika av upphandlingsreglerna när leverantörer Detta gäller former av lagöverträdelser som konkurrensmedel. korruption och anbudskarfrämst företeelser som svartarbete, teller. myndigheterna I rapporten beskriver vi hur upphandlande med hjälp av upphandlingskan motverka osund konkurrens om uteslutning av reglerna, bland annat bestämmelserna onormalt låga anbud. Målet för av förkastande samt törer ran leve är att uppnå konkurrens på lika åtgärder mot osund konkurrens och ytterst att vi ska få största villkor, väl fungerande marknader möjliga samhällsnytta för våra skattemedel.

K

KONKURRENSVERKETS RAPPORTSERIE

– Om lagöverträdelser som konkurrensmedel

The Swedish Competition Authority has looked into problems in the application of the procurement regulations in cases where suppliers use various forms of illegal actions as a means of competition. The report describes how procuring agencies can use the procurement regulations to counteract unhealthy competition. [ The Swedish Competition Authority report series 2013:6 ] 2013:6

Osund konkurrens i offentlig upphandling edel

Om lagöverträdelser som konkurrensm

Överprövningar av offentliga

KONKURRENSVERKETS RAPPORTSERIE

R

2013:6

2013:6

[email protected] www.konkurrensverket.se

This report gives an account of the appeals regulations and the available statistics on procurements where appeals have been lodged. The Swedish Competition Authority gives suggestions that could make the process more efficient, and reduce the negative effects of appeals. [ The Swedish Competition Authority report series 2013:5 ] D

KONKURRENSVERKETS

upphandlingar – Siffror

Appeals in public procurement – facts and figures

isken för överprövningar kan vara ett stort problem för upphandlare. En överprövning innebär att en myndighet Rapport inte kan teckna kontrakt med den leverantör som vunnit upphandlingen under den tid överprövningen pågår. I den här rapporten görs en genomgång av regelverket kring överprövningar och av den statistik som finns tillgänglig om hur många och vilka upphandlingar som blir överprövade och hur lång tid överprövningarna tar i domstolarna. Rapporten innehåller också förslag som vi anser kan effektivisera handläggningen och minska de negativa effekterna till följd av överprövningar för myndigheter och leverantörer.

Adress 103 85 Stockholm Telefon 08-700 16 00 Fax 08-24 55 43

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Överprövningar av offentliga upphandlingar Siffror och fakta

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Siffror och fakta om

Adress 103 85 Stockholm Telefon 08-700 16 00 Fax 08-24 55 43 [email protected]

den grundläggande fakta och enna rapport presenterar i den offentliga upphandlingen senaste statistiken om mellan göra en tydlig gränsdragning Sverige. Vi har försökt ektiv och köp av EU:s upphandlingsdir kontrakt som omfattas till och där möjligheterna som inte omfattas av direktiven avsevärt större. nationella lösningar är 2012 genomfördes som upphandlingar . Uppgifterna avser de Domstolsverket och annonsdatabaser KON0046_Omslag_Öve och har hämtats från SCB,

Facts and figures on public procurement

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och fakta

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With the aim of contributing to a discussion and debate on public procurement, the report presents facts and figures from procurements carried out in 2012. [ The Swedish Competition Authority report series 2013:9 ]

lingar som Statistik om upphand genomförts under 2012

KONKURRENSVERKETS

Rapport 2013:9

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Municipal systems of choice – focusing on home-help services

Siffror och fakta ng om offentlig upphandli

Adress 103 85 Stockholm Telefon 08-700 16 00 Fax 08-24 55 43 [email protected] www.konkurrensverket.se

The Government has commissioned the Swedish Competition Authority to survey and evaluate the competition conditions in the municipal systems of choice. Along with the interim report Kommunernas valfrihetssystem – så fungerar konkurrensen (2012:1) (The municipal system of choice – the state of competition), this report constitutes the final report of the assignment. K [ The Swedish Competition Authority report series 2013:1 ] ktaOmOffUpph.indd

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Valfrihetssystem inom Arbetsförmedlingen

över lagen om valonkurrensverket är tillsynsmyndighet ingår bland annat att frihetssystem (LOV). I uppdraget konkurrens i offentlig uppmärksamma hinder mot en effektiv effektiv offentlig upphandling. och privat verksamhet och mot en av valfrihetssystem För Arbetsförmedlingen har införandet har konkurrensutsatts. inneburit att delar av verksamheten en översiktlig beskrivning Konkurrensverket ger i denna rapport av Arbetsförmedlingens valfrihetssystem. KONKURRENSVERKETS RAPPORTSERIE

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Freedom of choice within the Employment Service

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Competition on equal terms in the municipal system of choice. A pilot study of three municipals with free choice in home-help services

Konkurrens på likvärdiga villkor i kommunernas valfrihetssystem

Adress 103 85 Stockholm Telefon 08-700 16 00 Fax 08-24 55 43 [email protected] www.konkurrensverket.se

KONKURRENSVERKETS RAPPORTSERIE 2013:8

The report highlights the competition conditions between external suppliers and the municipalities’ own administration. Three municipalities have been examined more closely with regard to resource allocation. The Swedish Competition Authority recommends and encourages transparency and clarity in financial accounting of all operations included in the system of choice. [ The Swedish Competition Authority report series 2013:8 ]

Rapport 2013:7

enom att tillämpa lagen om valfrihetssystem (LOV) ges kommuner möjlighet att öppna för valfrihet och konkurrens inom den kommunala omsorgen. Kommunerna ska inom ramen för valfrihetssystemen i största möjliga utsträckning ge egenregiverksamheterna konkurrensvillkor som är likvärdiga med dem som de externa utförarna får. Konkurrensverket har i denna pilotstudie prövat en metod för att bedöma konkurrensvillkoren i tre av landets 176 kommuner med valfrihetssystem inom hemtjänsten. I centrum för arbetet står frågan om hur vi kan säkerställa jämförbarheten i uppdrag och villkor mellan egenregin och de externa utförarna. Rapporten innehåller rekommendationer som riktar sig till kommuner som har infört eller beslutat införa valfrihetssystem inom den kommunala omsorgen.

Konkurrens på likvärdiga villkor i kommunernas

[email protected]

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Adress 103 85 Stockholm Telefon 08-700 16 00 Fax 08-24 55 43

Valfrihetssystem inom Arbetsförmedlingen KONKURRENSVERKETS RAPPORTSERIE

The Swedish Competition Authority has conducted a preliminary study on the freedom of choice within the Employment Service. The report shows that the supervision of free choice systems and their suppliers need to be developed further. [ The Swedish Competition Authority report series 2013:7 ]

Pilotstudie i tre kommuner med valfrihetssystem inom hemtjänsten

Rapport 2013:8

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Responses to official consultations In a statement regarding the report Goda affärer – en strategi för hållbar offentlig upphandling (Good business – strategy for sustainable public procurement) (SOU 2013:12), the Swedish Competition Authority gives a positive review of the investigation proposal of allowing public procurement greater strategic importance as well as to integrate it into the government skills development. The Swedish Competition Authority supports the proposal of having Statens Inköpscentral assisting authorities if needed in framework agreement suborders. It is the opinion of the Swedish Competition Authority that framework agreements, which are binding, should be investigated. The Swedish Competition Authority also stresses the importance of promoting research. [ Ref. no. 185/2013 ]

Knowledge It is the task of the Swedish Competition Authority to promote the uniform application of the national public procurement rules and to provide contracting authorities, entities and suppliers with the appropriate information regarding important decisions, our application of the rules and the content of these rules. Particular attention has been paid to information on procurement fines. Furthermore, we have also prioritised information that encourages and makes it easier for SMEs to participate in public procurement.

Almedalen and the Quality Fair During this year’s Almedalen Week in Gotland, the Swedish Competition Authority organised three of its own seminars for the first time. The overall theme of these seminars, which were held between 3–4 July, was welfare and competition. The panel discussions focused on the following topics: • Bidding cartels, black-market labour and corruption – on unfair competition in public procurements. • The public sector must not incapacitate private companies – about how public actors should conduct sales appropriately. • Free choice in rural areas – how does it work? The Swedish Competition Authority has also organised three mini-seminars at the Quality Fair in Göteborg this year. These seminars were held on 20 November, on similar themes to the ones in Almedalen. Topics on the agenda were procurement fines, sales activities by public entities and competition to promote a more effective process within the field of construction.

Electronic newsletter on procurement Our electronic newsletter is issued once a month and provides our 2,500 subscribers with current information about what is happening in the field of procurement.

Konkurrensverket.se The website, with its approximately half a million visitors per year, is the Swedish Competition Authority’s primary channel for external information. The website also contains an online quiz, where anyone who is interested can test their knowledge of competition and procurement.   We have also created a checklist with noteworthy points for correct application of the law in terms of public procurements and facilitating purchases in connection with official representation.

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Social media The presence of the Swedish Competition Authority in social media is a complement to the information and communication channels available via the website. Among other tools, we have been using Twitter in our external communication. Twitter has been a supplementary channel to communicate news, make addresses, advertise available positions, and generate attention in order to divert traffic to the other communication channels of the Swedish Competition Authority. We have also uploaded video clips and films from Competition Authority events on YouTube.

Information meetings During the year, the Swedish Competition Authority has participated in a number of seminars, conferences and meetings with procurers and suppliers around the country, including in Göteborg and in Almedalen on Gotland. The aim has been to provide information on legislation and our supervisory task. In October, the Swedish Competition Authority hosted a network meeting for procurement lawyers. Lectures were held on the subjects of unhealthy competition in public procurement, appeals in public procurements as well as implementation of the new public procurement directives of the EU.

Op-ed articles and speeches The Swedish Competition Authority has participated actively in the public procurement debate. Furthermore, our co-workers have given speeches and presentations to decision-makers as well as government, municipal and county council purchasers. Accountants have also been an important target group. Issues regarding competition and public procurement have been on the table in vastly different contexts, and the debates have involved measures against bribery and corruption among other subjects. Trade associations, municipalities, universities and other institutions are welcome to engage our staff as speakers. Op-ed articles and speeches have been published on the website.

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Level of knowledge among stakeholders regarding the Public Procurement Act It is stated in the Annual Governmental Appropriation Directions for 2013 that we should report on the level of knowledge that our stakeholders possess, in respect of the Public Procurement Act. The Swedish Competition Authority’s most important stakeholders are: large companies (200 employees or more), SMEs (less than 200 employees), trade associations, municipal authorities and county councils, business lawyers, journalists and the group ‘public authorities and agencies’. For the seventh consecutive year, we have surveyed knowledge of the Act. These findings are used when prioritising information initiatives and other activities for the coming year. The survey has been conducted by Institutet för kvalitetsindikatorer.

Awareness The overwhelming majority of all interest groups state that they are aware of the Public Procurement Act. In the business lawyer group, the awareness of the Swedish Competition Authority being responsible for supervision of the act has increased from 52 to 62 per cent. In the other groups, the awareness is still lower than 50 per cent, and the lowest level is found within the smaller companies, at 17 per cent. When it comes to knowledge of the Act on System of Choice in the Public Sector, 70 per cent in the group municipalities and county councils state they have heard of this law. Among the other interest groups, the act is still fairly unknown, but awareness is clearly increasing in the business lawyer group for the second year in a row.

Knowledge For the fourth consecutive year, the survey included two knowledge-based questions about procurement legislation. A vast majority in all of the interest groups, 89 per cent in total, knew that an authority can be fined for illegal direct award of contract (86 per cent in 2011 and 2012). Overall, 91 per cent (90 per cent in 2012) also knew that a court could declare a contract ineffective if it had been concluded following the illegal direct award of a contract.

Collaboration It is the Swedish Competition Authority’s task to work towards effective collaboration with other authorities and concerned parties. We are also to consult with authorities that will be affected by the measures we propose.

Consultations implemented in the field of procurement Several authorities, committees and investigators have a duty to consult with the Swedish Competition Authority, in accordance with instructions, letters of appropriation or directives. The following describes some of the formal consultations concerning procurement issues that have been implemented in 2013.

The Ministry of Health and Social Affairs The Swedish Competition Authority is involved in a reference group for the implementation of new EU directives on procurement. [ Ref. no. 48/2012 and 354/2013 ]

European Commission’s working group on electronic procurement Over the year, the Swedish Competition Authority has participated in the European Commission’s working group for issues concerning electronic procurement. [ Ref. no. 184/2012 ]

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The Ministry of Finance The Swedish Competition Authority has delegated an expert to participate in the investigation Ägarprövning och mångfald vid offentligt finansierade välfärdstjänster (Ownership assessments and diversity in publically financed welfare services). The purpose of this investigation is to ensure that society’s requirements are met in terms of owners and operators of companies in the education, health and social care sectors having a long-term, serious commitment to high-quality operations. [ Ref. no. 224/2013 ]

Initiated collaborations – new commission with responsibility for procurement support During the autumn 2013, the Swedish Competition Authority has held meetings to prepare for integration, and initiated a collaboration with representatives for Kammarkollegiet, Vinnova and the Swedish Environmental Management Council. The purpose of these meetings has been to facilitate the transfer of concerned co-workers and issues to the Swedish Competition Authority.

Dialogue between authorities The Swedish Competition Authority maintains regular contact with other authorities and organisations that are involved with the introduction of systems of choice within, for example, primary healthcare. Examples of such authorities are: the National Board of Health and Welfare, the Swedish Agency for Economic and Regional Growth, Kammarkollegiet – the Legal, Financial and Public procurement Agency, the Swedish Agency for Public Management, the Swedish Agency for Health and Care Services Analysis, Growth Analysis as well as Sweden’s municipalities and county councils. The Swedish Competition Authority also collaborates with industrial associations and organisations representing the non-profit sector.

Other authority collaboration As in previous years, the Swedish Competition Authority has collaborated with the Swedish Tax Agency, the Armed Forces, the National Financial Management Authority and the county administrative boards.

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Research The Swedish Competition Authority has a special government appropriation to be used towards research in the areas of both competition and public procurement. The appropriation for 2013 was close to SEK 14 million.   The research should result in an increased level of knowledge among our staff and stakeholders. In the first instance, we finance research within the fields of law and economics. We also organise conferences, seminars and workshops where we provide information about the research and its findings. Each year, the Swedish Competition Authority also holds a student essay competition, and in 2013 we had two competitions; one in the spring and one in autumn.

”Contributing to research that gives us new and improved knowledge of how markets work is really valuable.”

Projects that received support in 2013 Our most important task within the area of research is to fund and support research projects. Over the year we received 24 applications for research grants within the areas of competition and public procurement. The Swedish Competition Authority granted funds for three new projects within competition research and one within public procurement research, amounting to nearly SEK 2.3 million combined. The Swedish Competition Authority also paid out just over SEK 8.3 million to 14 ongoing projects.

Competition research The following is an account of new research projects on competition-related topics. • Professor Fredrik Andersson at the School of Economics and Management at Lund University has been given a research grant for the project “Competition, public provision and organizations in health and elderly care”. • Professor Frank Verboven at the Department of Economics of KU Leuven has been granted funding for the project “Evaluating Merger Simulation: Uncertainty, Economic Assumptions and Practical Implementation”. • Professor Tore Nilsson from the Department of Economics at the University of Oslo has been given funding to organise the Nordic Conference in Industrial Organization in 2014.

Research relating to public procurement The following is an account of new research projects on procurementrelated topics. • Tobias Indén, senior lecturer at the Faculty of Law at Umeå University has been granted funding to conduct a study focusing on procurement, markets and land development.

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Commissioned research The Swedish Competition Authority also commissions research projects when we notice a direct need for investigation or highlighting of certain aspects within the field of competition and procurement. Findings are generally published in a special report series for commissioned research. For each commission, we assign a reference group with the task of assuring the quality of the study. These reference groups consist of people with special expertise within the area in question. Our ambition is for the reports to be founded on a solid academic basis and for them to be written in such a way that the content can also be understood by non-specialists.   A total of SEK 2.7 million was awarded to commissioned research within the field of competition and procurement.

Commissioned research reports on competition The Swedish Competition Authority published the following commissioned research reports in 2013: • Marknadsövervakning på den nordiska elmarknaden (Market surveillance on the Nordic electricity market) written by Niclas Damsgaard, Ph.D. (Econ.), and Sara Hollmén from SWECO. This report highlights the set-up of market surveillance on the Nordic electricity market, and compares this with market surveillance of raw material and financial service markets. • Stat, marknad och reglering i historiskt perspektiv (State, market and regulation from a historical perspective) written by Professor Jan Ottosson from Uppsala University and Professor Lena Andersson-Skog at Umeå University. Based on the re-regulation trend of the 1990s, these professors focus on different phases of regulatory changes for markets and monopolies, from a long-term perspective. • Inför prisregleringen av fjärrvärme – vilka lärdomar kan dras från ekonomisk teori och empiri? (Regulating the price of district heating – which lessons can be learned from economic theory and empiricism?) written by Associate Professor Jerker Holm of Lund University, who accounts for a number of aspects that are relevant when considering a price change assessment in regard to district heating. • Retail pricing, vertical control and competition in the Swedish gasoline market written by Professor Frode Steen and Professor Øystein Foros of the Norwegian School of Economics. They have analysed the Swedish market for fuel sales, primarily looking at whether the short-term price cycles that have been observed by earlier studies in other countries also exist on the Swedish market.

Commissioned research reports on public procurement The Swedish Competition Authority published the following commissioned research reports in 2013: • Upphandling av IT – inlåsningseffekter och möjligheter (Procurement of IT services – lock-in effects and possibilities) written by Juris Doctor Richard Wessman. This report focuses on the possible issues that might face an authority when procuring IT systems.

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Conferences, Pros and Cons series and workshops In order to disseminate and increase knowledge of current competition and procurement issues, the Swedish Competition Authority organises an international research seminar every year, on the theme “The Pros and Cons”. Since the first seminar in 2002, researchers and experts have discussed pros and cons of interesting aspects of competition law. The theme of this year’s seminar was The Pros and Cons of Counterfactuals. Approximately a hundred researchers, academics, lawyers and representatives of competition authorities attended the conference. In connection to earlier conferences, the Swedish Competition Authority has published research anthologies, the latest ones being More Pros and Cons of Merger Control (2012) and The Pros and Cons of Consumer Protection (2011). The Swedish Workshop in Competition Research (SWCR) was held on 5 December. This is an annual workshop organised by the Swedish Competition Authority Council for Research Issues. SWCR is held in connection to the Pros and Cons seminar, focusing on matters relating to competition law and procurement.

Working Paper In the Working Paper series, the Swedish Competition Authority presents ongoing research related to the field of competition policy. These texts are published in English, and are intended to spread research and methodology that could be of interest to authorities, researchers and other interested parties, in Sweden and internationally. The Swedish Competition Authority published the following papers in 2013: • Reputation and Entry by Jeffrey V. Butler, Enrica Carbone, Pierluigi Conzo and Giancarlo Spagnolo

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• Merger Simulation with Nested Logit Demand – Implementation using Stata by Jonas Björnerstedt and Frank Verboven • The Role of the ’Equally Efficient Competitor’ in the Assessment of Abuse of Dominance by Martin Mandorff and Johan Sahl

Essay competition The Swedish Competition Authority organise an annual essay competition to promote interest in competition and procurement issues among students. Because the submission dates were changed, the Swedish Competition Authority decided to hold two essay competitions in 2013. One with the last application day in February, and one with the last application day in September. The competition is open for all subjects relevant to the activities of the Swedish Competition Authority. 21 submissions participated in the spring competition and 25 in the autumn. The essay writers were competing for SEK 75,000 and SEK 100,000. Eleven essays were awarded with prizes.

Council for Research Issues The Council for Research Issues has been assigned to foster research in the areas of competition and procurement and to present the Swedish Competition Authority with the results of developments, primarily within the fields of law and economics relevant to its activities. Members of the Council are appointed by the Swedish Competition Authority and have a term of two years. The Council has convened three times this year. The agenda included general research questions, applications for research grants, proposals for commissioned research and the essay competition.

Members of the Council for Research Issues Caroline Heide-Jørgensen Professor of Law, Copenhagen University

Katarina Olsson Professor of Law, Lund University

Lars Henriksson Professor of Law, Stockholm School of Economics

Magnus Söderberg Senior Lecturer in Economics, CERNA, Mines ParisTech

Tobias Indén Associate Professor of Law, Umeå University Sofia Lundberg Associate Professor of Economics, Umeå University Peter Møllgaard Professor, Copenhagen Business School Kristina Nyström Associate Professor of Economics, KTH Royal Institute of Technology

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Lars Sørgard Professor of Economics, Norway School of Economics, Bergen Dan Sjöblom Director-General, chair of the Council, Swedish Competition Authority Joakim Wallenklint Research Coordinator and Secretary of the Council, Swedish Competition Authority

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International work Cooperation within the EU ECN Within the European Competition Network (ECN), the Swedish Competition Authority has a close cooperation with the European Commission and the competition authorities of the other member states to enforce articles 101 and 102 (anti-competitive cooperation and abuse of a dominant position respectively) of the Treaty on the Functioning of the European Union (TFEU).   The Commission and competition authorities in the member states reported 94 new cases in the network in 2013. In addition to this, the Swedish Competition Authority receives information about tip-offs and complaints that have been sent to the Commission. In 2013, 30 such reports were made.   The parties are given an opportunity to orally present opinions on the Commission’s draft proposals at a hearing before the Commission makes a decision. The competition authorities of the member states are consulted about the proposed decisions through meetings of the advisory committees. The Swedish Competition Authority has participated in 20 such meetings this year. National competition authorities are also obligated to consult the Commission before making decisions pursuant to Articles 101 and 102 of TFEU, but no such consultation was needed by the Swedish Competition Authority in 2013.

“One of the tasks of the Swedish Competition Authority is to promote international development within its area of operation. We cooperate with equivalent authorities in other countries and participate in different networks and international organisations.”

Information exchange Collaboration within ECN also takes place through the exchange of information between public authorities and in a number of working groups focusing on different issues. The Swedish Competition Authority has participated in approximately 27 working group meetings over the year. The ECN representatives have also participated in drafting recommendations on investigative and decision-making processes at the member state competition authorities. The aim of these recommendations is to facilitate the exchange of information and to increase harmonisation between the competition authorities.

Public Procurement Network The Public Procurement Network (PPN) is a network involving representatives from European agencies that work specifically with public procurement. The network aims to improve the application of procurement regulations and to promote public procurement across borders. In 2013, the presidency of the network has been shared by Lithuania and Ireland.

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Investigations for other public authorities The Swedish Competition Authority assists the European Commission and its sister organisations within the EU with on-site investigations and obtaining information from companies in Sweden. Over the year, the Swedish Competition Authority has assisted a sister organisation by ordering a Swedish company to submit written information. The Swedish Competition Authority has also received assistance from a sister organisation in carrying out an on-site investigation and in obtaining information from companies outside of Sweden.

Nordic cooperation The Nordic competition authorities have liaised closely for many years now. Our 54th meeting was held in Nuuk, Greenland, where discussion topics included consortium cooperation, construction operations and oligopolies in smaller economies. Several working groups with participants from the Nordic countries have met over the year, including the Cartel Group and the Chief Lawyer and Chief Economist Group. The Nordic cartel network consists of representatives from the different authorities who work with cartel investigations. The presidency is rotating and the participants meet once per year to discuss current matters and methodology developments. The Swedish Competition Authority hosted the meeting in June. In addition to these annual meetings, there are regular telephone conferences for updates on each respective operation.   The jointly published Nordic report called A Vision for Competition – Competition Policy towards 2020 [ ref. no. 193/2011 ] includes a comparison of the different competition policies, legislations and enforcement of regulations in the Nordic countries as well as an analysis of what role the Nordic competition authorities could play in achieving the goal of sustainable economic growth in the future.   Every ten months, representatives of the Nordic competition authorities and their associated ministries meet to exchange information and discuss current issues relating to procurement law. In 2013, the meeting was held in Oslo, and the agenda included topics such as the implementation of new Procurement Directives, environmental and social consideration, and unhealthy competition in public procurement.

EU statistics In accordance with the Procurement Directives, Sweden must submit annual statistics on public procurement to the European Commission. The obligation to gather information within the field of procurement also complies with the Government Procurement Agreement within the World Trade Organisation (WTO). The statistics that the Swedish Competition Authority has submitted to the Commission were compiled by Statistics Sweden. Information about thresholds is obtained from Tenders Electronic Daily, an EU database. The information about thresholds is obtained through questionnaires to government authorities and other bodies. [ Ref. no. 33/2013 ]

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Other international cooperation OECD The Competition Committee of the Organisation for Economic Co-operation and Development (OECD) holds meetings three times a year, which we always attend. The topics for discussion in 2013 included the definition of the term ’transaction’ in acquisitions, effective international collaboration between competition authorities, proactive methods in cartel investigations, the railway industry and vertical limitations in online sales. The Director-General of the Swedish Competition Authority has been a member of the steering group since 2010, which prepares the work of the Competition Committee.

ICN Competition authorities from all around the world cooperate within the International Competition Network (ICN). The Swedish Competition Authority actively participates in all of the ICN working groups. Over the year, twelve external advisors have been linked to the five work groups: effective working methods, cartels, concentrations of undertakings, measures to promote competition and abuse of dominant position.   Together with the competition authorities Office of Fair Trading (UK) and Rekabet (Turkey), the Swedish Competition Authority has continued to lead the work within the group focusing on abuses of dominant positions. In September the Swedish Competition Authority organised an international seminar in Stockholm on the theme of exclusive agreements. The analytical framework of exclusive agreements, damage theory and sanctions were discussed. In the continued work with the handbook on abuse of market power, the Swedish Competition Authority has participated in the chapter on loyalty discounts. The analysis framework regarding loyalty discounts has also been a topic for discussion during a teleseminar.   Swedish Competition Authority co-workers have participated as moderators and speakers in connection to the seminars of other work groups, for example in a seminar on cartel investigations. In December, the Director-General participated in a seminar on measures to promote competition in relation to public procurement.   Within the work group focusing on the effectiveness of authorities, the Deputy Director-General of the Swedish Competition Authority led a teleseminar to discuss how various competition authorities use social media. Co-workers in that same work group have spoken about knowledge management in yet another teleseminar, and written a chapter on the same subject in the handbook. Another co-worker has participated in the development of an investigative process. The Swedish Competition Authority has also contributed to a chapter in the handbook on Human Resources.   At the annual ICN conference in April, the Swedish Competition Authority was represented in all work groups.

International conferences In June, Swedish Competition Authority co-workers participated in the international conference “Public Procurement: Global Revolution VI”, which

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was organised by the Public Procurement Research Group (PPRG) of Nottingham University. In November representatives of the Department for the Supervision of Public Procurement went to Copenhagen to participate in The Nordic Public Procurement Forum. Keeping within the subject of public procurement, speakers from the Swedish Competition Authority has repeatedly highlighted the new Procurement Directives from a Swedish perspective, and emphasised the importance of measures against unhealthy competition.

Other cooperation Between the years 2011–2013, the Swedish Competition Authority has participated in a project financed by Sida, the purpose of which was to establish a competition authority and enforcement of new competition rules in Georgia. The project period ended at the end of December.   Over the year, we have had visits from delegations from Bosnia-Hercegovina, Indonesia, South Africa, Romania, Russia and Hungary. In addition, several Swedish Competition Authority co-workers have been invited to speak at conferences by various organisations, competition and procurement authorities, in places like Brazil, Bulgaria, India, Serbia, South Africa, the Czech Republic and Hungary.

Advisory Committee on Public Procurement International cooperation relating to procurement issues largely takes place within the framework of the European Commission’s advisory committee and working groups linked to it, in which members of our staff participate. The respective working groups deal with matters relating to economics and statistics, and electronic procurement.

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Staff and organisation Staff The most important resource for the Swedish Competition Authority is our staff. For this reason, it is a management priority to ensure that our colleagues are happy and have chances to evolve professionally, through opportunities to try new tasks and to participate in courses, seminars, workshops and meetings with sister organisations, both in Sweden and abroad.   In 2013, the Swedish Competition Authority has invested SEK two million in professional development, i.e., approximately SEK 13,000 per co-worker. Among the longer courses we might mention programmes at King’s College in London, and among the shorter are courses in Nottingham and Copenhagen. The collaboration with other Nordic countries and the cooperation within ICN, ECN and OECD also provide professional learning opportunities. Over the course of the year, several of our colleagues have participated in these forums. As a supplement to our professional development meetings, the Swedish Competition Authority has developed a careers portal. Information on education and working tasks is entered, and the colleagues can express any wishes regarding future working tasks.

The core values of the Swedish Competition Authority:

“We will create a world-class procurement support. We will do so while maintaining our focus on uncovering cartels and illegal direct awards of contracts. We are now strengthening our organisation to deal with these new tasks”.

Competent We endeavour to achieve a high level of competence, to enhance our knowledge and to improve our methods so that we can carry out our assignment efficiently on the basis of our priorities. We share our knowledge with colleagues and communicate our message in a way that is adapted to our various stakeholders.

Respectful We endeavour to be transparent, clear and responsive in our communications with all parties, those providing information, clients and others affected by our activities. A respectful approach is fundamental to success and well-being in the workplace. We are all responsible for our own conduct and treatment of others, and helping one another means that together we can apply our resources with the best possible effect.

Result-oriented We endeavour to achieve clear and measurable results within all our activities and support functions in order to promote welfare through well-functioning markets. Good team spirit helps us to do well, feel a sense of job satisfaction and it enables us to achieve good results.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – sta f f a n d org a n isat ion

Health promotion and absence due to illness Health promotion is something that we view as an investment at the Swedish Competition Authority. All colleagues therefore have the opportunity, during working hours if the workload permits it, of doing one hour of health promotion activity per week. The Swedish Competition Authority gives an allowance of up to SEK 5000 per co-worker and year to cover health promotion costs. The Swedish Competition Authority also has a staff association called Efterverket, which has organised various activities over the year, like skiing, rock-climbing and museum visits.   The Swedish Competition Authority has procured Previa as our health service provider, and all co-workers have been offered a check-up. The average number of days due to illness in 2013 was 3 days per employee.

Core values Developing and upholding the core values of the Swedish Competition Authority has been a priority for several years. The Authority’s core value group convenes once or twice per month. The topics discussed are communicated to the management group. The group is headed by Anna-Karin Neikter Larsson and Mattias Kerslow and otherwise consists of one colleague from each department on yearly rotation. The group deals with issues such as public relations. External lecturers have also been invited to the Swedish Competition Authority, among them Stefan Einhorn who gave a lecture on the art of being nice.

Organisation The Swedish Competition Authority is headed by Director-General Dan Sjöblom. He is assisted by Deputy Director-General Kristina Geiger and all of the Directors of Departments, who are also part of the management group.   In its budget proposal, the government announced that the Swedish Competition Authority would be responsible for all procurement support, including innovation and sustainable matters, as of 2014. On 28 November 2013, it was decided that the transfer of innovation procurements would take place on 1 January 2014 and that the Legal, Financial and Public procurement Agency procurement support would be incorporated on 1 March 2014. The procurement support activities of the Swedish Environmental Management Council are also

64

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – sta f f a n d org a n isat ion

DirectorGeneral INTERNATIONal affairs

Policy and Support

Communications TIP-offs & enquiries

Deputy DirectorGeneral

ADMINISTRATION

Chief Economist

S1

Public procurement policy

S2

Public procurement support

S3

Policy evaluation

Legal affairs

Enforcement

T1

Cartels & mergers

T2

Abuse & vertical restraints

T3

Competition neutrality

T4

Public Procurement – Illegal direct award of contracts

Organisation chart of the Swedish Competition Authority as of 1 January 2014

intended to be transferred no later than 1 July 2014. To prepare for these new tasks, the Swedish Competition Authority has started three working groups (integration, core values, and communication), in which representatives of Vinnova, the Swedish Environmental Management Council and the Legal, Financial and Public procurement Agency have collaborated with Competition Authority colleagues. The integration groups have also included union representatives from the different organisations.   In order to handle our new tasks in the best way possible, while maintaining the same high level of quality as before, the Swedish Competition Authority implements a new organisation on 1 January 2014. In this new organisation, supervision and support are separated (in terms of responsibility and reporting) into two separate departments. The Directors of Department for support and supervision are in charge of three and five units respectively.   As of 1 January 2014, the Swedish Competition Authority management group consists of the Director-General, the Deputy Director-General, all the Directors of Department, and the Director of International Affairs.   Information concerning the entire Swedish Competition Authority has been provided during the year at Authority meetings for all staff, which are held once per month, and continuously via the intranet Kompassen. Department meetings have been held weekly. Since the Swedish Competition Authority has a greater informative task starting in 2014, a new Communications Department has been formed.

T5

Public procurement – General supervision

FACTS During 2013, the Swedish Competition Authority has had 132 full-time equivalents (FTEs), distributed at 56 per cent women and 44 per cent men. The average age is 41. Just over 90 per cent of them have a graduate or postgraduate qualification, the majority in law or economics. 40 per cent of our lawyers have court experience. Amongst our economists, over 45 per cent have a postgraduate qualification, and nine have doctorates. Around fifteen different nationalities are represented at the Swedish Competition Authority. During the year, 19 new employees have been recruited and 10 have left. Other than our own employees, the Swedish Competition Authority has also procured resources from Bemannia for reception, janitorial and substitute staffing.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – sta f f a n d org a n isat ion

The Swedish Competition Authority management group as of 1 January 2014 The management group consists of the Director-General, the Deputy DirectorGeneral, the Directors of Departments and the Director of International Affairs. Back row, left to right: Hanna Witt, Director of Enforcement Dept., Johan Hedelin, Acting Director of Policy and Support Dept. Front row, left to right: Dan Sjöblom, DirectorGeneral, Arvid Fredenberg, Chief Economist and Director of Chief Economist Dept., Kristina Geiger, dep. Director-General, Director of Administrative Dept. and Acting Director of Communications Dept., Karin Lunning, Director of International Affairs, Per Karlsson, Chief Legal Officer and Director of Legal Affairs Dept.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Facts and Financial Accounting

Under ’Facts in brief’ we give an account of statistics relating to the Swedish Competition Authority´s cases of law enforcement, supervision and official consultations. The Swedish Competition Authority is also working on proposals for regulation changes and other improvement measures, support for research projects, international efforts, etc. On 1 January 2013, the Swedish Competition Authority introduced a new, process-based archive accounting system. The case categories ’Other Competition Act cases’, ’Transparency Act’ and ’Regulatory framework and public sector’ are no longer deemed essential to accounting, and have therefore been removed from Facts in brief.

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Facts in brief CASE STATISTICS  Costs include indirect costs and are broken down by cases concluded Competition Act cases Estimated annual cost, including indirect costs, (SEK ‘000) 1 Time spent (of total time) per cent Average processing time for concluded cases, calendar days 2 Anti-competitive cooperation Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4

2013

2012

2011

85 344 65 126

88 246 67 130

86 322 66 85

15 19 17 17

10 26 21 15

7 15 12 10

226 851 507

252 869 522

204 804 512

3 2 1 4

6 5 8 3

5 6 5 6

357 745 444

346 1 886 1 132

95 623 397

3 3 3 3

8 3 8 3

11 18 21 8

379 1 760 1 049

307 926 556

230 744 474

In 2012, two cases referring to anti-competitive cooperation were concluded with a processing time exceeding 730 calendar days.

Abuse of a dominant position Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 In 2012, two cases were concluded (ref. no. 632/2009 and 262/2011) for which a total of a little over 10,000 hours were registered. For all other cases, the average number of hours amounted to 825.

Anti-competitive sales activities by public entities Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 The three cases that were concluded in 2013 were greatly different in nature. The number of hours per case amounted to 10, 1,500 and 3,800 respectively. Processing times also varied between around one month and closer to two years.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Notifications of concentrations Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4

2013

2012

2011

4 48 45 7

10 36 42 4

4 63 57 10

31 221 132

29 257 154

26 112 72

4 28 28 4

4 30 30 4

5 38 39 4

38 24 14

32 41 25

44 33 21

9 5 6 8

8 4 3 9

4 6 2 8

806 2 612 1 557

300 482 289

38 1 1

38 105 100 43

46 104 112 38

36 146 136 46

In 2011, two cases were concluded that together comprised barely 3,500 hours; in 2012, four cases had a total of barely 8,000 hours, and in 2013, five cases comprised a total of around 8,000 hours spent. For other applications, an average 60 hours per case were registered.

Other concentration cases Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 Court cases 5 Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average time to complete cases at court, calendar days 5 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 In 2011, only two appeals of Swedish Competition Authority decisions were concluded. In 2013, the case against TeliaSonera, which was opened in 2004, was concluded. For other concluded cases, the average time in court was 344 days..

Total number of Competition Act cases Balance brought forward Registered Concluded Balance carried forward

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Public Procurement Act Estimated annual cost, including indirect costs, (SEK ‘000) 1 Time spent (of total time) per cent Average processing time for concluded cases, calendar days 2 Supervision cases etc. Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4

2013

2012

2011

21 182 16 218

18 962 14 187

20 998 16 168

53 98 89 62

59 96 102 53

27 124 92 59

177 65 38

184 33 19

168 80 50

25 23 20 28

15 24 14 25

0 15 0 15

403 94 55

207 46 27

-

1 862 2 154

733 1 304

1 201 1 116

0 3 3 0

1 1 2 0

2 4 5 1

154 543 318

304 392 230

116 40 25

For one case (ref. no. 149/2010) concluded in 2011, close to 2,000 hours were registered. In 2013, 1 concluded case (ref. no. 355/2012) comprised a total of 1,740 hours. For other applications, an average 54 hours per case were registered.

Court cases Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average time to complete cases at court, calendar days 6 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 From July 2010 the Swedish Competition Authority has been able/obligated to apply to court for procurement fines. Out of the 20 cases that were concluded in 2013, seven had been submitted to a court in 2011, i.e., the first year that the Swedish Competition Authority applied for procurement fines. Time reports have been made in 60 per cent of the concluded cases. For the other cases, time reporting has been made under a common post. The average number of hours is based on the cases where time reporting has been carried out..

Act on System of Choice in the Public Sector Estimated annual cost, including indirect costs, (SEK ‘000) 1 Time spent (of total time) per cent Average processing time for concluded cases, calendar days 2 Balance brought forward Registered Concluded Balance carried forward Concluded cases: Average processing time for concluded cases, calendar days 2 Average number of hours spent per case 3 Estimated cost per case, including indirect costs, (SEK ‘000) 4 Concluded government assignments are reported separately, and are not part of this summary. In 2012, we submitted the final report for the assignment to follow-up on the choice system within primary health care and the assignment to pay our funds. In 2013, we submitted the final report for the assignment to survey and evaluate the competition conditions in the municipal systems of choice.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

2013

2012

2011

Responses to official consultations Official consultations responded to Time spent (of total time) per cent Estimated cost per case, including indirect costs, (SEK ‘000) 4

211 4 22

167 3 26

191 3 22

Key figures Total area of premises per co-worker, m2 Rent for premises per co-worker and year, (SEK ‘000)

21 89

21 87

23 97

1)

Total administrative cost distributed according to time registered during the year.

2)

From the date the case was opened until it was closed.

3)

Registered hours from the time the case was opened until it was closed.

4)

 otal hours for the entire processing time, regardless of calendar year, has been calculated based on the hourly cost in the year the case was closed. T This calculation has also been made two years back, to get comparative figures.

5)

From the date the Swedish Competition Authority submitted a summons application to Stockholm City Court until the case was settled in the final instance.

6)

From the date the Swedish Competition Authority submitted a summons application to the Administrative Court until the case was settled in the final instance.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Financial review ACTIVITIES FINANCED BY APPROPRIATIONS (SEK ‘000)  The distribution of costs and appropriations is based on registered time

Year Competition Public Procurement

Appropriations 2013 2012 2011 104 769 104 012 105 374 28 491 30 035 25 932

Other incomes 2013 2012 1 562 2 478 977 -

2011 1 396 2 450

2013 106 331 29 468

Costs 2012 106 490 30 035

2011 106 770 28 382

Total

133 260

2 539

3 846

135 799

136 525

135 152

134 047

131 306

2 478

REVENUE COLLECTION (SEK ’000) Income Year Administrative fines Procurement fines

2013 35 000 7 287

2012 11 390 883

2011 468 -

Contributed to Central Government budget 2013 2012 2011 35 000 11 390 468 7 287 883 -

Total

42 287

12 273

468

42 287

12 273

468

TRANSFERS (SEK ‘000)

Year Competition   of which refers to   court costs   of which is research Public Procurement   of which is research Total

Received from Central Government budget/ other public authorities 2013 2012 2011 16 267 6 461 7 316 9 000 256 177

Grants paid

Financial costs

2013 16 267 9 000

2012 6 459 254

2011 7 316 177

2013 -

2012 2 2

2011 -

7 267 3 272 3 272

6 205 3 848 3 848

7 139 4 162 4 162

7 267 3 272 3 272

6 205 3 848 3 848

7 139 4 162 4 162

-

-

-

19 539

10 309

11 478

19 539

10 307

11 478

0

2

0

Government assignments reported 2013 Assignments UNDER INSTRUCTIONS, APPROPRIATION DIRECTIONS AND SPECIAL ASSIGNMENTS (SEK ‘000) Ref. no.

Assignment

596/2011 Assignment to survey and evaluate the competition conditions in the municipal systems of choice 723/2012 Competition in Sweden 2013 7/2013

72

Surveillance of the Swedish market for alcoholic drinks – report to the European Commission

Funds received from Funds received from appropriation 24.01:15 appropriation 9.5:1 ap. 1 ap. 23 Swedish Competition The Ministry of Health Authority (KKV) and Social Affairs 4 000 450

Costs incl. overheads

4 530

-

-

2 700

-

-

95

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Summary of significant information (SEK ‘000) Credit line granted at the Swedish National Debt Office Credit line drawn at the end of the financial year Account credit granted by the Swedish National Debt Office Account credit drawn over the year Interest expense on interest account Interest income on interest account Income from charges, etc. that the Authority appropriates (the Authority appropriates of all income from charges, etc.) Total income calculated under Appropriation Directions Appropriation credit granted 24 01:15 Appropriation envelope 24 01:16 Competition research 24 01:21 Financing of litigation costs 26 01:04 Transition impact of settlement in terms of cost Appropriation credit drawn Appropriation savings 24 01:15 Appropriation envelope 24 01:16 Competition research 24 01:21 Financing of litigation costs 26 01:04 Transition impact of settlement in terms of cost FTE Average number of employees Annual operating cost per employee Change in capital for the year Change in capital brought forward Transfers according to Note 10 Authority Capital Closing authority capital

2013

2012

2011

2010

2009

12 000 2 735

12 000 5 235

10 000 6 747

12 000 6 424

12 000 5 059

8 000 0

8 000 0

8 000 0

8 000 345

4 000 3 516

1 193

247

304

54

1 40

2 329

2 176

3 501

2 921

2 055

1 200

1 200

1 200

1 200

1 200

4 030 411 1 800 -

3 983 405 1 800 -

3 835 430 1 000 -

3 797 395 1 000 -

3 636 389 1 000 916

-

-

-

-

-

7 368 257 9 000 -

3 235 900 17 744 -

2 025 361 19 823 -

3 769 210 28 626* -

982 11 -916

132 152 1 007

134 154 996

124 138 1 069

121 136 1 039

109 127 1 137

-

-

-

700 -700 -

-700 -5 787 5 787 -700

* Previously appropriated by the Ministry of Enterprise, Energy and Communications.

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Income statement (SEK ’000) Operating income Income from appropriations Income from charges and other payments Income from grants Financial income

Notes

2 3 4

Total Operating expenses Employee benefit expenses Expenses for premises Other operating costs Financial expenses Depreciations and write-offs

5

4 6

Total Operational result Revenue collection work Unappropriated income from charges and other payments Funds contributed to Central Government Budget

7

Balance Transfers Funds received from Central Government budget to finance grants Financial costs Grants paid

8

2013

2012

133 260 1 352 977 210

134 047 2 176 0 302

135 799

136 525

-100 014 -14 290 -18 851 -54 -2 590

-99 180 -14 497 -19 835 -111 -2 902

-135 799

-136 525

0

0

42 287 -42 287

12 273 -12 273

0

0

19 539 0 -19 539

10 309 -2 -10 307

Balance

0

0

Change in capital for the year

0

0

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Balance sheet ASSETS (SEK ’000) Tangible assets Cost of improvements to leased property Machinery, equipment, fixtures and fittings, etc.

Notes 6

Total Short-term receivables Accounts receivable Receivables from other public authorities Other short-term receivables

9 10 11

Total Cut-off items Prepaid expenses Other accrued income

12 13

Total Settlement account with the government Settlement account with the government

14

Total Cash and bank balances Balance in interest account with Swedish National Debt Office

31/12/2013 31/12/2012

15

979 1 855

1 772 3 463

2 834

5 235

3 1 739 59

1 2 406 108

1 801

2 515

4 240 0

3 952 553

4 240

4 505

-6 784

-3 072

-6 784

-3 072

18 922

14 098

Total

18 922

14 098

Total assets

21 013

23 281

Authority Capital Change in capital brought forward Change in capital as per income statement

0 0

0 0

Total

0

0

CAPITAL AND LIABILITIES (SEK ’000)

Provisions Provisions for pensions and similar obligations

16

Total Liabilities etc. Loans from Swedish National Debt Office Short-term liabilities to other public authorities Accounts payable Other short-term liabilities

17 18 19

Total Cut-off items Accrued expenses Unappropriated grants

611

1 854

611

1 854

2 735 3 051 3 338 1 714

5 235 2 874 4 212 1 689

10 838

14 010

9 041 523

7 417 0

20

Total

9 564

7 417

Total capital and liabilities

21 013

23 281

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Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Statement of appropriations STATEMENT OF APPROPRIATIONS (SEK ‘000) as of 31 December 2013 Appropriations 24 01:15 ap.1 Appropriation envelope 24 01:16 ap.1 Competition research, appropriation envelope 24 01:21 ap.2 Financing of litigation costs, appropriation envelope Total appropriations

Allocation for Opening the year under transfer Appropriation amount Directions 3 235 134 319 900 13 686

Total available amount Expenditure 137 554 130 185 14 091 13 834

Withdrawal -495

Closing transfer amount 7 368 257

17 744

18 000

-17 744

18 000

9 000

9 000

21 879

166 005

-18 239

169 645

153 019

16 625

Appropriation 24 01:21 finances costs associated with cases or matters where the Swedish Competition Authority’s decision has been appealed or where the Authority is bringing an action. During 2012, the Swedish Competition Authority has been ordered to compensate for the counterparty’s costs in two cases. The funds may only be used following the decision of the Government Offices.

STATEMENT OF REVENUE TITLE (SEK ’000) as of 31 December 2013 Revenue title 2714 Financial penalties, etc. Administrative fines Procurement fines

Inkomster 35 000 7 287

Total financial penalties

42 287

STATEMENT OF CHARGE ACTIVITY WHERE THE INCOME IS APPROPRIATED (SEK ’000) Activity

Charge activity Charge income, Swedish Post and Telecom Charge income, Sida Charge income, other Total charge income

76

until end of 2011 +/-

2012 +/-

Income

0 0 -

0 0 -

2013

Expense

2013 +/-

Acc. 2013 +/-

600 720 32

-600 -720 -

0 0 -

0 0 -

1 352

-1 320

0

0

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Notes Note 1 Accounting policies The annual report has been established in accordance with the Ordinance (2000:605) concerning Annual Reports and Budget Documentation. The Swedish Competition Authority follows generally accepted accounting principles as interpreted by the general advice of the Swedish National Financial Management Authority (ESV) relating to Section 6 of the Bookkeeping Ordinance (2000:606). Accounts receivable and receivables are carried at nominal value. Accrued or prepaid expenses and accrued or deferred income that amount to SEK 50,000 or more are distributed over a period of time. Information of significant importance Funds allocated for the Swedish Competition Authority’s activities shall be split between competition and public procurement based on time recorded. Fixed assets All acquisitions with an economic life of at least three years and a cost of at least half one base amount are accounted for as a fixed asset. Objects falling below this fixed amount but which belong to a functioning department are added to other objects and defined as an asset. The cost is depreciated on a straight-line basis based on the assessed economic life. Installations in and rebuilding work at leased premises are recorded as the cost of improvements to other property. If the end date for the lease contract is shorter than the financial life span of an asset, then the depreciation period is calculated from after the expected utilisation period. Tangible assets Computers and peripherals Other office equipment Furniture Cost of improvements to leased property

Depreciation period 3 years 5 years 6–10 years 6 years

Other The Director-General’s monthly salary is SEK 106,900. The Director-General has a car at disposal for business and private use. Total gross earnings paid in cash for 2013 amount to SEK 1,270,200. The Director-General has not reported involvement in any additional assignments.

Note 2 Income from charges and other payments, subtotal (SEK ’000)

2013

2012

14

34

18

14

Publication sales under Section 4 of the Fees Ordinance Income under Section 15 of the Fees Ordinance (copies etc.) Payments from Sida for aid projects Payments from the Swedish Post and Telecom Authority Net sales value of fixed assets

720

1 445

600 -

600 83

Total income

1 352

2 176

Note 3 Income from grants (SEK ’000)

2013

2012

The Ministry of Health and Social Affairs – choice system within primary health care

977

-

Total grants

977

0

2013

2012

Interest income linked to interest account at the Swedish National Debt Office Other financial income

193

247

17

55

Total financial income

210

302

Interest expense linked to loans with the Swedish National Debt Office Other financial expenses

46 8

98 13

Total financial expenses

54

111

2013

2012

64 258

63 646

Note 4 Financial income and expenses (SEK ’000)

Note 5 Employee benefit expenses (SEK ’000) Payroll expenses (excl. employer’s contributions, contract premiums and other statutory and contractual charges) Other employee expenses Total employee benefit expenses

35 756

35 534

100 014

99 180

77

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Note 6 Tangible assets (SEK ’000)

31/12/2013 31/12/2012

Note 7 Revenue collection work (SEK ’000)

2013

2012

Unappropriated income from charges etc. Administrative fines Procurement fines

35 000 7 287

11 390 883

Total revenue collection work

42 287

12 273

2013

2012

Cost of improvements to leased property Balance brought forward – costs The year’s acquisitions The year’s disposals Balance carried forward – costs

4 300 4 300

4 300 4 300

Depreciations Accumulated balance brought forward The year’s depreciations The year’s disposals Accumulated balance carried forward

2 528 793 3 321

1 735 793 2 528

Research grant Compensation for litigation costs

10 539 9 000

10 053 254

979

1 772

Total transfers

19 539

10 307

Other Balance brought forward – costs The year’s acquisitions The year’s disposals Balance carried forward – costs

8 446 90 -34 8 502

8 701 430 -685 8 446

2013

2012

3

1

Depreciations Accumulated balance brought forward The year’s depreciations The year’s disposals Accumulated balance carried forward

6 805 598 -34 7 369

6 604 886 -685 6 805

2013

2012

Receivable in respect of input value added tax Receivable from other public authorities

1 684

1 806

55

600

1 133

1 641

Total

1 739

2 406

Computers Balance brought forward – costs The year’s acquisitions The year’s disposals Balance carried forward – costs

4 202 99 -102 4 199

4 088 515 -401 4 202

Note 11 Other receivables (SEK ’000)

2013

2012

Receivable from the European Commission

59

108

Depreciations Accumulated balance brought forward The year’s depreciations The year’s disposals Accumulated balance carried forward

Total

59

108

2 380 1 199 -102 3 477

1 581 1 200 -401 2 380

Note 12 Cut-off items, prepaid expenses (SEK ’000)

2013

2012

722

1 822

Rent paid in advance Other prepaid expenses

3675 565

3 383 569

4 240

3 952

2013

2012

Book value

Book value

Book value Vehicles on financial lease Balance brought forward – costs The year’s acquisitions The year’s disposals Balance carried forward – costs

Note 9 Accounts receivable (SEK ’000) Accounts receivable Note 10 Receivables from other public authorities (SEK ’000)

Total 0 0

269 -269 0

Depreciations Accumulated balance brought forward The year’s depreciations The year’s disposals Accumulated balance carried forward

0 0

246 23 -269 0

Book value

0

0

78

Note 8 Transfers (SEK ’000)

Note 13 Other accrued income (SEK ’000) Accrued income Sida

-

553

Total

0

553

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Not 14 Settlement with the government (SEK ’000) Revenue collection Balance brought forward Recognised under revenue title Revenue collection funds paid to non-interest-bearing flow Funds from interest account that contributed to revenue title Liabilities relating to revenue collection Appropriations in non-interest-bearing flow 24 01:21 Financing of litigation costs, appropriation envelope Balance brought forward Recognised against appropriations Funds attributable to transfers paid to non-interest-bearing flow Receivables relating to appropriations in non-interest-bearing flow Appropriations in interest-bearing flow Balance brought forward Recognised against appropriations   24 01:15 Appropriation envelope  24 01:16 Competition Research, appropriation envelope Total recognised against appropriations Appropriated funds added to interest account  24 01:15 Appropriation envelope  24 01:16 Competition Research, appropriation envelope Total appropriated funds contributing to the interest account Repayment of appropriated funds  24 01:16 Competition Research, appropriation envelope Total appropriated funds repaid to interest account Liabilities relating to appropriations in interest-bearing flow Receivables relating to holiday pay liability that has not been recognised under appropriations Balance brought forward Recognised against appropriations over the year under the exception clause Receivable relating to holiday pay liability that has not been recognised under appropriations Total settlement with the government

2013

2012

0 -42 287 42 287

-468 -12 273 12 741

0

0

Note 15 Balance in interest account with Swedish National Debt Office (SEK ’000)

0 256 -256

0

0

-2 387

130 185

131 545

13 834

12 977

144 019

144 522

-134 319 -13 686

-132 754 -13 516

-148 005

-146 270

495

0

495 -7 626

1 062 -220

-4 135

1 484 -422

842

1 062

-3 711

-1 702

7 368

3 235

257

900

11 297

9 963

Total balance in interest account

18 922

14 098

2013

2012

1 854 4 -817

1 698 362 -

Balance brought forward, pensions The year’s pension expenses The year’s pension compensations, referring to 2011 The year’s pension payments Balance carried forward, pension payments

-4 135

2012

Appropriation savings on the appropriation 24 01:15 Swedish Competition Authority Appropriation savings on the appropriation 24 01:16 Competition research Other funds

Note 16 Provisions for pensions and similar obligations (SEK ’000) 0 9 000 -9 000

2013

-430

-206

611

1 854

Pension payments refer to future commitments to pay out pension compensation (SEK 292,000) and partial pensions (SEK 319,000).

Note 17 Loans from Swedish National Debt Office (SEK ’000)

2013

2012

Credit line granted Balance brought forward New loans raised over the year Repayments over the year

12 000 5 235 90 2 590

12 000 6 747 1 403 2 915

Total balance carried forward

2 735

5 235

Note 18 Short-term liabilities to other public authorities (SEK ’000)

2013

2012

1 766

1 738

1 083 202

1 109 27

Total

3 051

2 874

Note 19 Other short-term liabilities (SEK ’000)

2013

2012

Liability to the Swedish Tax Agency (employer’s contributions, etc.) Accounts payable Other short-term liabilities to other public authorities

Staff tax at source

1 714

1 689

Total

1 714

1 689

79

Sw edish Com pe t i t ion Au t hor i t y a n n ua l r e port 2013 – Fac ts a n d f i na nc i a l accou n t i ng

Note 20 Cut-off items (SEK ’000)

2013

2012

Accrued holiday pay liability, including social security contributions Staff turnover Accrued salary payments Other accrued costs, governmental Other accrued costs, non-governmental

6 873

6 028

647 56 165 1 300

461 415 125 388

Total accrued expenses Unappropriated grants from other public Authorities

9 041 523

7 417 -

523

0

9 564

7 417

Total unappropriated grants Total cut-off items

Stockholm 6 February 2014 I hereby certify that this annual report provides a true and accurate picture of operational performance, the income and expenditure of the Swedish Competition Authority and its financial position.

Dan Sjöblom, Director-General

80

Note 21 Sickness absence Total Women Men Employees aged 29 and under Employees aged 30-49 Employees aged 50 and over Long-term sick leave as a percentage of the total number on sick leave (60 days or more)

2013 per cent

2012 per cent

1,3 1,4 1,0 0,9 1,4 1,0

1,4 1,5 1,2 1,7 1,1 2,0

16,6

8,1

Project Owner: Kristina Geiger Project Manager: Rigmor Öberg Editor/Head of Production and Communication: Charlotte Råsbrant Bergström Project Group: Peter Eriksson, Tanja Gross Project Assistant: Monica Holmgren Design and Production: YRA Photos: Studio CA, Bildarkivet.se Printing: TMG Tabergs 2014 Translation: Språkservice Sverige AB

Address 103 85 Stockholm Phone 08-700 16 00 Fax 08-24 55 43 [email protected]