the swedish competition authority - annual report 2014 · 4 swedish competition authority 2014...
Post on 05-Jul-2020
6 Views
Preview:
TRANSCRIPT
SWEDISH COMPETITION AUTHORITY
2014 Annual Report
ContentsMessage from the Director General 4The year in brief 6Our mandate 10
Competition 14Law enforcement and supervision 16Examples of Competition Act cases 19Improvement measures 28Knowledge and communication 29Collaboration 32
Public procurement 34The consolidated procurement support function 36Government assignments 48Law enforcement and supervision 48Examples of procurement supervision 50Applications for procurement fines 56Knowledge and communication 62Improvement measures 64Collaboration 65
Research 66
International cooperation 72EU cooperation 74EU statistics 76Nordic cooperation 76Other international cooperation 76
Staff and organisation 80
Facts and financial statements 88Facts in brief 90Financial review 94Reports issued on government assignments 94Summary of significant information 95Income statement 96Balance sheet 97Statement of appropriations 98Notes 99
A year of progress and change2014 was hallmarked by, among other
things, the organising and developing of a
procurement support function at the
Swedish Competition Authority. Building on
foundations laid by the Swedish Legal,
Financial and Administrative Services
Agency, the Swedish Environmental
Management Council and VINNOVA, we
created an organization that stands ready
to help the myriad stakeholders involved in
the procurement process by offering a
consolidated national support function to
address these important matters.
Among other measures taken to date, the
Swedish Competition Authority’s procure-
ment support function has drafted three
guidelines pertaining to the procurement of
health and medical care, held a number of
seminars on a variety of themes throughout
the country, and focused on outlining
criteria to help develop a procurement
process that yields more sustainable out-
comes. We have worked on government
assignments, including guidelines for the
procurement of nontoxic goods for pre-
schools in a manner that is consistent with
the procurement regulations.
Efforts to develop the procurement
support function will continue in 2015.
I hope that the work that is completed by
1 September 2015 will serve as a solid
foundation for its continued development
when a new independent agency is created
from the procurement support function in
accordance with a government decision.
Considerable progress has been made in
terms of law enforcement and supervision.
Several key cases have made their way to
court. One such case was the merger of
Sweden’s two largest estate agents under a
single owner, Swedbank. The Swedish
Competition Authority took the matter to
court to block the transaction, which, in our
opinion, would severely undermine
conditions for estate agents, as well as the
buyers and sellers of houses and apart-
ments. On 16 December, the Stockholm
District Court ruled in favour of the
Swedish Competition Authority.
Two companies in the tyre market were
found by the Stockholm District Court to
have colluded in a bid rigging cartel when
placing bids in conjunction with public
procurements. We also filed two summons
applications against companies that we
deem to have violated the cartel rules – one
in the removals sector and the other in the
telecom sector. We also brought an action
against the snus manufacturer Swedish
Match for abusing its dominant position.
In terms of the supervision of public
procurement, the Swedish Competition
Authority has to date applied for adminis-
trative fines to be imposed in a total of 82
cases, 20 of which were in 2014. In one case,
concerning Falu Municipality, an adminis-
trative fine of SEK 8 million was ordered.
This is the largest fine to date in a judgment
that has gained legal effect.
The Swedish Competition Authority does not aim to bring in the highest fines possible
for the government, but instead intends for
these judgments and interventions to serve
as a deterrent against other parties violat-
ing the competition and procurement
legislation.
This allows us to create the foundation
for a properly functioning market – in the
interest of consumers and the general
public.
4 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT MESSAGE FROM THE DIRECTOR GENERAL
Dan Sjöblom Director General,
Swedish Competition Authority
MESSAGE FROM THE DIRECTOR GENERAL SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 5
6 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT YEAR IN BRIEF
YEAR IN BRIEF SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 7
2014 – Year in brief1 January: Swedish Competition Authority to regulate innovation procurement
Responsibility for innovation procurement is transferred to the Swedish Competition
Authority.
21 January: Tyre companies convicted of illegal bidding collusion
Two tyre companies, Däckia and Euromaster, are ordered to pay SEK 2.5 million in adminis-
trative fines for illegal collusion in conjunction with public procurement processes.
31 January: Municipalities may not distort competition
The Market Court establishes that the Municipal Association Räddningstjänsten Dala Mitt
(an emergency service) has violated the Competition Act by refusing to give a private entity
access to a training area.
1 March: Procurement support function transferred to Swedish Competition Authority
The Swedish Legal, Financial and Administrative Services Agency’s procurement support
function is transferred to the Swedish Competition Authority.
31 March: Borås Municipality’s Service Office may not compete in the private market
The Stockholm District Court sides fully with the Swedish Competition Authority in a
judgment that prohibits the municipality from selling services to anyone other than the
municipality itself.
3 April: Haninge Bostäder is fined SEK 10 million
The Administrative Court sides with the Swedish Competition Authority and establishes
that municipal companies are not allowed to buy a company with assets in the aim of
circumventing the procurement rules.
27 May: Swedish Competition Authority and VINNOVA partner on innovation procurement
The Swedish Competition Authority and VINNOVA reach an agreement regarding a partner-
ship on innovation procurement. The partnership aims to make it easier for contracting
authorities to access high quality support and guidance.
10 June: Akademiska Hus is fined SEK 3 million
The state-owned company, Akademiska Hus, must comply with the Public Procurement Act
when purchasing goods and services. The Umeå Administrative Court orders the company to
pay an administrative fine for the illegal direct award of contracts.
26 June: Stockholm County Council ordered to pay SEK 3 million in procurement fines
The Stockholm Administrative Court rules fully in favour of the action brought by the
Swedish Competition Authority seeking administrative fines from the Stockholm County
Council.
1 July: Swedish Competition Authority assumes control of the Swedish Environmental
Management Council’s procurement activities
The Swedish Environmental Management Council’s procurement activities are transferred
to the Swedish Competition Authority, thus consolidating the procurement support function
under a single authority.
8 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT YEAR IN BRIEF
1 July: Guidelines for the use of sustainability criteria
The Swedish Competition Authority publishes new guidelines on the use of sustainability
criteria in public procurement.
1 July: Information on guidelines and the obligation to maintain
documentation for direct awards without prior contract notice
The Swedish Competition Authority publishes information in conjunction with an increase
in the threshold for direct awards of contract.
2 July: Swedish Competition Authority tasked with new government assignment
To make it easier to achieve a nontoxic environment in preschools, as well as an assignment
to sharpen expertise on food procurement.
3 July: Swedish Competition Authority at the Almedalen Week
(event featuring policy forums on Gotland)
The Swedish Competition Authority organises five seminars during the Almedalen Week,
featuring procurement for welfare as the overarching theme.
15 July: Swedish Competition Authority takes action against three removals companies
The Swedish Competition Authority files a summons application against three companies in
the removals sector for illegal collusion. The Swedish Competition Authority requests that
the removals companies pay a total of SEK 42 million in administrative fines.
16 September: Swedish Competition Authority initiates a series of breakfast seminars
The seminars, which are held during the autumn, educate participants on, and offer support
regarding procurement.
22 September: Dawn raids in the environmental and waste sectors
The Swedish Competition Authority initiates an investigation on potential violations of the
competition rules in the environmental and waste sectors.
24 September: Report on consolidation of the procurement support function
The report indicates that the new organisation, with its wide range of expertise, has resulted
in stronger support, information and guidance on sustainable and effective public procurement.
7 November: Analysis of amortisation recommendations
The Swedish Competition Authority presents its preliminary analysis, which serves as the
basis for the investigation into the Swedish Bankers’ Association’s amortisation recommend-
ations on housing loans. The analysis indicated that the recommendation could constitute a
violation of the Competition Act.
20 November: Malmö Municipality convicted of repeated procurement violations
The Administrative Court of Appeal upholds the judgment against Malmö Municipality.
Malmö Municipality is ordered to pay SEK 325,000 in fines for repeated procurement
violations.
24-25 November: Nordic workshop on sustainable procurement
The Swedish Competition Authority organises the first Nordic workshop on sustainable
procurement, social requirements and the analysis of lifecycle costs.
YEAR IN BRIEF SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 9
28 November: Research seminar The Pros and Cons
The year’s theme for the Swedish Competition Authority’s international research seminar
is The Pros and Cons of Antitrust in Two-Sided Markets, which focuses on competition
policy and two-sided markets.
1 December: Investigation into the procurement of intermediate housing
The Swedish Competition Authority publishes an investigation focusing on how project-
based contests can be used to identify new forms of intermediate housing.
5 December: Facts and figures on public procurement
For the fifth consecutive year, the Swedish Competition Authority publishes a report that
features fundamental facts and figures on public procurement.
9 December: Scope of electronic procurement
The Swedish Competition Authority presents a government assignment with a description
of the current scope of electronic procurement.
10 December: Swedish Match taken to court for SEK 38 million in fines
The Swedish Competition Authority files an application with the Stockholm District Court
seeking administrative fines of approximately SEK 38 million from Swedish Match.
15 December: Four of ten care clinics operating on deficits
The Swedish Competition Authority submits a report to the government that evaluates the
process of choosing a primary care provider.
16 December: Court blocks estate agent deal
Fully in line with the Swedish Competition Authority’s request, the Stockholm District Court
rules that Swedbank Franschise’s acquisition of Svensk Fastighetsförmedling must revert
back to the structure in place prior to the transaction.
18 December: New report on municipal companies
The “charting of municipal companies’ sales activities” report is published, in which the
Swedish Competition Authority charts sales activities based on the municipal companies’
perspectives.
18 December: Telia Sonera and GothNet in bid rigging cartel
The Swedish Competition Authority files a summons application with the Stockholm District
Court against TeliaSonera Sverige and Göteborg Energi GothNet, seeking nearly SEK 35
million in administrative fines.
19 December: New website launched
The Swedish Competition Authority launched a new website, konkurrensverket.se, where
information on the consolidated procurement support function and our supervisory
activities are presented.
19 December: New authority for procurement support
The government tasks the Swedish Competition Authority with preparing for the transfer of
activities related to procurement to a new authority.
10 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT OUR MANDATE
Our mandateWe serve to promote effective competition among private and public operations to the benefit of consumers, and to achieve an effective public procurement pro-cess to the benefit of the general public and market participants. Read more about our service on the following pages.
OUR MANDATE SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 11
12 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT OUR MANDATE
Our mandate The Swedish Competition Authority is an
administrative authority for matters con-
cerning competition and public procure-
ment. We serve to promote effective com-
petition among private and public opera-
tions to the benefit of consumers, and to
achieve an effective public procurement
process to the benefit of the general public
and market participants. As of January
2014, the Swedish Competition Authority is
also responsible for ensuring a strengthened
national procurement support function.
The aim of the procurement support
function is to help strengthen the strategic
significance of procurement among public
operations, to facilitate participation in the
public procurement process for small to
medium-sized enterprises, to thwart con-
flicts of interest and corruption, to foster
innovation-compatible procurement and to
help in achieving the objectives related to
long-term sustainable development.
Work on developing the consolidated
procurement support function was in
progress throughout 2014. On 19 December,
the government tasked the Swedish
Competition Authority with preparing for
the transfer of tasks related to the procure-
ment support function to a new government
agency. The Swedish Competition Authority
has been focusing on this task since then.
A report on the costs that are expected to
be incurred by the Swedish Competition
Authority was submitted to the government
on 1 February 2015.
Our work builds on insights into, and
knowledge and analysis of our target
groups’ needs as well as initiatives. On the
supervision side, we receive substantial
assistance from reports and tip-offs from
companies and the public. In 2014, we spent
considerable time on various government
assignments, predominately regarding
procurement. Pursuant to our appropria-
tion directions, we have focused on law
enforcement and supervision in those areas
which the Swedish Competition Authority is
primarily meant to pursue under the
Swedish Competition Act (2008:579).
We have also worked on proposals for
amendments to rules and other measures to
clear obstacles to entry for companies, and
to enable an effective procurement process.
Furthermore, we have focused on a number
of different research projects in partnership
with independent researchers in the aim of
raising awareness in matters related to
competition and procurement.
Our annual report is presented on the
basis of our appropriation directions:
» law enforcement and supervision
» procurement support
» improvement measures
» knowledge
» research
» international efforts
» collaborations.
Quality assurance for legal certaintyOur continuous dedication to quality
assurance aims to ensure that our adminis-
tration is legal certain effective and
appropriate. Our work is often carried out
in project form to ensure a high level of
quality and that the right expertise is
applied. The decision-making process is
preceded by quality assurance measures in
accordance with our rules of procedure.
We hold what are known as state of play
meetings during which parties and repre-
sentatives are informed of the Swedish
Competition Authority’s views on the
matter and what the proceeding steps in the
investigation will be. The aim of the state of
play meetings is to create transparency in
investigations into various matters. During
these meetings, parties and representatives
are also given the opportunity to ask the
project team questions. We also offer oral
proceedings upon request. These proceed-
ings are a formalized way to express oral
opinions about the Swedish Competition
Authority’s decisions also while in the
OUR MANDATE SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 13
draft phase. In 2014, we also continued to
develop our procedures for hearings and
for the handling of sales data in conjunction
with mergers. We held several meetings
with representatives to gather opinions
and proposals as to how we can further
improve the quality and effectiveness of
our investigations.
The Swedish Competition Authority’s
decision on a case is made by the Director
General or by the person to whom the
Director General has delegated the matter.
Our Chief Counsel and Chief Economist
participate in the preparation of decisions
along with the individual in charge and the
employees investigating the matter.
Tip-offs and enquiries are imperative to our workTip-offs and enquiries concerning suspected
competition and procurement-related
problems are essential to our work. In our
supervisory work, they form the basis for
being able to track and intervene against
severe violations of the regulatory frame-
work that we are tasked with enforcing.
Responding to enquiries is part of our core
operation and helps increase our under-
standing of our target groups’ needs and
helps us assign priority to the rights matters.
If we find that we are unable to resolve
competition or procurement-related
problems through the legislation in place,
following the conclusion of the investiga-
tion we can opt to submit proposals for
legislative amendments to the government.
As the authority in charge of supervising
public procurement it is imperative for us
to be informed of procurement processes
that fail to comply with the regulatory
framework and to receive feedback on the
Public Procurement Act.
Just over a third of the comments that we
receive from companies are directed at
contracting authorities. These comments
may concern the illegal direct award of
contracts, ambiguously worded requests for
proposals, or decisions that are challenged
by suppliers. This year, the Swedish
Competition Authority received just over
1,700 enquiries and complaints from
businesses, customers and consumers,
compared with nearly 1,100 in 2013, the
rise in which was attributable to the
coordination of the consolidated procure-
ment support function at the Swedish
Competition Authority in 2014.
The influx of enquiries predominantly
pertain to procurement-related queries,
most commonly concerning direct awards
without a prior contract notice.
14 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
CompetitionPre-emptive efforts related to providing information and guidance are imperative for businesses and procurers to have the proper means to make the right decision from the very beginning.
In 2014, the Swedish Competition Authority continued to investigate questions that have been
raised concerning competition in the commercial radio market. Read more about competition
and other examples of cases related to the Competition Act on the following pages.
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 15
16 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
CompetitionLaw Enforcement and supervisionThe Swedish Competition Authority is
responsible for the enforcement of the
Competition Act and articles 101 and 102
of the Treaty on the Functioning of the
European Union (TFEU). During the year,
the Swedish Competition Authority reached
130 decisions in this supervisory capacity.
Focus on communications in our supervisory activitiesPre-emptive efforts related to providing
information and guidance are imperative
for businesses and procurers to have the
proper means to make the right decision
from the very beginning. Accordingly, in
2014, the Swedish Competition Authority
made a dedicated effort to clearly provide
information regarding the regulatory frame-
work which we are charged with enforcing,
our decisions, and how we approach the
task of assigning priorities. Among other
measures, we developed a new prioritisa-
tion policy for our enforcement activities
and a policy on external communications
concerning enforcement matters, both of
which are published on our website,
konkurrensverket.se. The website was
modernised and re-launched in late 2014.
Many of our cases received considerable
attention during the year. One example is
the case against Swedbank in which the
Swedish Competition Authority intervened
in a merger in the estate agent market;
another example was our summons
application against Swedish Match concern-
ing abuse of a dominant position, and a
third was our analysis illustrating that the
Swedish Bankers’ Association’s amortisa-
tion recommendations could be in violation
of the Competition Act.
We also discussed our Swedish leniency
programme in an opinion piece in the
Swedish financial daily Dagens Industri, and our investigative methods in an opinion
piece in Svenska Dagbladet, as well as our
summons application against Telia and
GothNet in an opinion piece in Göteborgs-
Posten.
We also wrote articles on topics including
cartel detection and interactive guidance
tools that can be used as a resource for
purchasers and small-business owners. The
articles were published in various interna-
tional magazines. The Swedish Competition
Authority’s own newsletter and press
releases have helped raise further aware-
ness concerning law enforcement and
supervision matters.
In 2014, the Swedish Competition
Authority developed a new model for
factsheets that we have begun using to help
describe the cases that we are investigating
in a manner that is easy to understand. The
factsheets are published on our website. We
have also worked on further clarifying our
decisions concerning the dismissal of cases
and enforcement decisions.
Our general recommendations concern-
ing leniency and trading prohibitions were
updated in 2014.
Several lectures were held during the
year regarding the regulatory framework system, the Swedish Competition Authority’s
role, our methods and the cases that we are
investigating, both in Sweden and other
international settings. An example of this is
our presentation on vertical agreements
from a supervisory perspective, which we
held at a conference on vertical agreements
in Brussels in June. We were invited to
Tillväxt Motala, a business consultancy, to
discuss the rules governing anti-competitive
public sales activities and our operations.
We discussed corruption, the illegal direct
award of contracts and bid rigging cartels
at the ICN Cartel Workshop in Taipei in
October 2014, and our on-site investigations
at an international conference organised by
the Austrian Competition Authority in
December.
We also produced two new brochures
during the year. One is entitled “The right
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 17
approach to competition” and is specifically
geared toward small to medium-sized
enterprises with no or limited knowledge
about the competition regulations. The
other is entitled “How the Swedish Competi-
tion Authority conducts on-site inspections”
and is meant to be given to representatives
of the companies that are subject to
unannounced inspections by the Swedish
Competition Authority in what are known
as dawn raids. Both of the brochures are
also available on our website.
During the autumn of 2014, we held
three meetings for legal representatives
with different themes: mergers, leniency
and on-site inspections, as well as investig-
ations of abuse of dominance. In total,
about 100 individuals participated in the
meetings.
In 2014 we also worked on updating two
interactive guidance tools that are available
on the Swedish Competition Authority’s
website. One is geared toward companies
that collaborate within the framework of a
trade association, and the other toward
small to medium-sized enterprises that
want to partner in procurement processes.
These guidance tools will be re-launched in
the spring of 2015. A completely new
interactive guidance tool pertaining to
anti-competitive public sales activities was
also developed in 2014, which will also be
launched in the spring of 2015.
Continued focus on bid rigging cartelsEfforts to pre-empt, detect and investigate
bid rigging cartels continue to be assigned a
high priority in our enforcement activities.
We have several investigations under way
in various phases, in which companies are
suspected of having colluded in bidding
processes. During the year, we made
several speeches on this theme, in addition
to which we published articles underscor-
ing the importance of paying attention to
the risks of bid rigging in the public procure-
ment process. We also spend considerable
time advancing our knowledge of applying
economic analysis to procurement data
in the aim of being able to detect and
investigate these types of cartels.
18 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 19
Anti-competitive cooperation
Summons application:Data communications connections in GothenburgThe Swedish Competition Authority has
filed a summons with the Stockholm
District Court against TeliaSonera Sverige
and Göteborg Energi GothNet demanding
nearly SEK 35 million in administrative
fines for forming a bid rigging cartel ahead
of a procurement process held by the City
of Gothenburg in 2009.
When the City of Gothenburg held a
procurement process for data communica-
tions services, GothNet and TeliaSonera
Sverige agreed that TeliaSonera Sverige
would not submit a bid in the process,
despite GothNet and TeliaSonera Sverige
being key competitors in the same market.
TeliaSonera is a publicly listed company,
while GothNet is a municipal company
owned by the City of Gothenburg.
[Ref no.: 848/2014]
Commitment:Market for commercial radioIn 2014, the Swedish Competition Authority
continued its investigation into questions
raised concerning competition in the
commercial radio market. Two radio
stations, SBS Discovery Radio AB (SBS
Radio) and RBS Broadcasting AB (NRJ), have
committed to partly refraining from
collaborating on the sale of radio advertis-
ing time in certain broadcasting areas.
The companies have now made amend-
ments to a previous version of their
partnership agreement, and NRJ must
submit regular reports on its compliance
with the commitment to the Swedish
Competition Authority. If the companies fail
to comply with the commitment, fines of
SEK 20 million and SEK 15 million may be
imposed on SBS Radio and NRJ respectively.
[Ref no.: 174/2012]
Summons applicationRemovals sectorThe Swedish Competition Authority has
brought an action against three companies
in the removals sector for colluding to form
a non-competition alliance. The Swedish
Competition Authority has now filed a
summons application against the compa-
nies with the Stockholm District Court and
is seeking administrative fines of SEK 42
million from the companies for illegal
collusion. In conjunction with one of the
companies acquiring operations from the
other companies, the companies drafted
contracts on two occasions agreeing not to
compete with each other for international
household removal assignments, thus
resulting in customers’ range of options
being limited when moving abroad.
[Ref no.: 511/2014]
Active investigation:Questions raised concerning competition in the market for online hotel bookingsIn 2014, the Swedish Competition Authority
continued its investigation into whether
online travel agencies, by stipulating terms
and conditions known as price parity in
their contracts with Swedish hotels, are
restricting competition in the market for
online hotel bookings. Active investigation.
[Ref no.: 595/2013, 596/2013]
Active investigation:Suspicion of anti-competitive collusion in the waste sectorThe Swedish Competition Authority has per-
formed unannounced inspections at two
municipal companies that are suspected of
having violated the competition rules. The
suspected violations manifested themselves
in the companies coordinating their bids in
public procurement processes pertaining to
the incineration of household waste, and
refusing to accept the waste for incineration
Examples of Competition Act cases Presented below is a selection of supervision matters that the Swedish Competition Authority has investigated during the year.
20 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
from the company that won the procure-
ment contract. The Swedish Competition
Authority will continue to investigate this
matter in 2015. [Ref no.: 598/2014]
Dismissal due to corrective measures taken during the investigation: The Swedish Bodybuilding and Fitness FederationThe Swedish Competition Authority
investigated what was known as a loyalty
clause in the Swedish Bodybuilding and
Fitness Federation’s (SKKF) by laws that may
have been anti-competitive against other
organisers of bodybuilding and fitness
competitions. During the course of the
investigation, SKKF announced that athletes
that compete for other organisations no
longer risk expulsion or fines. Members
who serve as coaches, functionaries or
judges in another organisation will no
longer be subject to expulsion or fines. The
Federation has stated that it has informed
its members of these updates by newsletter
and on its website. Based on these actions,
the Swedish Competition Authority decided
not to pursue its investigation further.
[Ref no.: 590/2013]
Dismissal due to corrective measures taken during the investigation: Swedish Bankers’ Association’s amortisation recommendationsThe Swedish Competition Authority has
investigated whether the Swedish Bankers’
Association’s distribution of amortisation
recommendations to its members constitu-
ted a violation of the rules governing anti-
competitive cooperation. Under the amortis-
ation recommendations, the member com-
panies would have conducted themselves in
a certain manner in the market that risked
appreciably restricting competition. During
the course of the investigation, the Bankers’
Association announced that it would repeal
the recommendations, thus prompting the
Swedish Competition Authority to close the
investigation. [Ref no.: 674/2014]
Active investigation: Suspicion of anti-competitive cooperation in the environmen-tal and waste sectorBased on suspicions of anti-competitive
cooperation, the Swedish Competition
Authority performed unannounced
inspections at companies in the environ-
mental and waste sector. The raids constitu-
ted part of a search for evidence that could
help chart and underpin suspicions of
potentially anti-competitive practices.
[Ref no.: 184/2014]
Concentrations
The Swedish Competition Authority went to court to block Swedbank Franchise’s acquisition of Svensk FastighetsförmedlingIn June 2014, the Swedish Competition
Authority filed a summons with the
Stockholm District Court in which the
Authority sought to prohibit Swedbank
Franchise’s acquisition of Svensk Fastighets-
förmedling. Under the terms of the transac-
tion, Swedbank Franchise AB, which is
owned by Swedbank, would gain control
of the country’s two largest estate agent
franchises. The two estate agent franchises,
Fastighetsbyrån and Svensk Fastighetsför-
medling, would have jointly commanded
about 40 per cent of the property transac-
tions in Sweden, had the purchase been
completed. The Swedish Competition Autho-
rity is of the view that the transaction
would significantly impede competition in a
vast number of local markets, which would
undermine conditions for the estate agents’
customers. The main hearings were held in
the Stockholm District Court in November 2014 and in a judgment issued 16 December,
the Stockholm District Court sided with the
Swedish Competition Authority and blocked
the merger. Swedbank and Svensk Fastig-
hetsförmedling have appealed the judgment
by the District Court, and the Market Court,
which is the final instance, will hold a
hearing on the case in late February 2015.
[Ref no.: 426/2014]
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 21
Approval for acquisition in the telecommunications marketTeliaSonera notified its acquisition of Zitius,
Quadracom Networks, Quadracom Services,
QMarket Riksnet. After several companies
in the telecom market raised concerns
regarding the acquisition, the Swedish
Competition Authority initiated an in-depth
investigation. The Swedish Competition
Authority concluded that, following the
acquisition, TeliaSonera would collectively
become the largest supplier of communica-
tions operator services (CO services) to open
networks in the Swedish market with a
market share of about 30 per cent. The
market is a procurement market and even
after the acquisition, TeliaSonera would
face competition from major companies.
Potential competition could also be faced
from municipal companies that regard
operating a proprietary alternative in the
future as a likely strategy, and from other
companies that could make progress in the
value chain and enter the CO market. The
network owners that purchase CO services
also serve as a countervailing buying
power. The Swedish Competition Authority was also unable to conclude that TeliaSonera,
which also acts as a service provider in
open network, would, following the acquisi-
tion, be able to exclude other service
providers or make it less profitable for
these providers to operate in the networks
for which TeliaSonera is the communica-
tions operator. Through the acquisition,
TeliaSonera expanded its already substantial
command of fibre network infrastructure,
though it controls far less than 1 per cent of
the total fibre in Sweden. The Swedish
Competition Authority deemed that that
merger would not significantly impede the
existence or emergence of effective compe-
tition and decided not to take any action.
[Ref no.: 89/2014]
Gas springs for swivel chairsSpinnaker Norway AcquiCo AS acquired
Scandinavian Business Seating Holding AS
(SBS), which manufactures and markets
office furniture, including swivel chairs.
Spinnaker’s owner, the venture capital firm
Triton, also controls Stabilus GmbH, which
supplies gas springs to manufacturers of
swivel chairs. This created a vertical
relationship between SBS and Stabilus. In
its assessment of the case, the Swedish
Competition Authority operated under the
assumption that the relevant market could
be gas springs for eco-labelled swivel chairs
in Sweden, since this scenario could give
rise to the most significant impact on
competition. Stabilus’ gas springs constitute
a key component for swivel-chair manu-
facturers in Sweden. However, gas springs
comprise a minor share of the end produc-
tion and of the production costs. The
investigation did not result in evidence indi-
cating that, following the acquisition, it
would be profitable for Triton and SBS to
prevent competing swivel chair manufactu-
rers from gaining access to Stabilus’ gas
springs. Since Stabilus was already the
primary supplier of gas springs to SBS, the
acquisition was not deemed to yield any
material impact on Stabilus’s competitors.
The Swedish Competition Authority did not
take any action. [Ref no.: 527/2014]
The daily newspaper Sydsvenskan’s acquisition of Helsingborgs DagbladThe Swedish Competition Authority
investigated Sydsvenska Dagbladet’s
acquisition of Helsingborgs Dagblad (HD).
Both of the newspapers are primarily active
in the publication and distribution of local
morning papers, as well as the sale of
advertising space. Each of the newspapers’
distribution areas had a limited degree of
overlap, and as such the newspapers
exerted only a limited competitive pressure
on one another in terms of both readers
and advertisers. The acquisition of HD
could also strengthen the position of
Sydsvenskan’s owner, the Bonnier Group, in
terms of the packaging of advertisements
by giving it the ability to offer a broader
range and lower prices in national and local
campaigns. The Swedish Competition
Authority deemed it unlikely that the
merger would impart such market strength
as to risk resulting in the exclusion of a
22 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
competitive supply and, over time, having a
negative impact on advertising clients and
ultimately consumers. The Swedish
Competition Authority did not take any
action. [Ref no.: 388/2014]
Martin & Servera’s acquisition of Galatea Spirits Martin & Servera, which is a full-range
wholesaler to hotels, restaurants and
catering services, acquired Galatea Spirits,
which owns a number of brands that
import and distribute beer and other
alcoholic beverages. The operations of the
parties overlap primarily regarding the sale
of class III beer (over 3.5 per cent by
volume) to hotels, restaurants and catering
services. Certain concerns emerged during
the course of the investigation that, follow-
ing the acquisition, Martin & Servera, would
prioritise Galatea’s products to its custo-
mers, ahead of others in its supply. The
Swedish Competition Authority concluded
that there are several options available for
suppliers of alcoholic beverages in market-
ing their products to these customers and
that the parties’ combined market share
was limited. No action was taken on the
merger. [Ref no.: 618/2014]
Abuse of dominant position
Summons application: Abuse of dominant position in the snus marketThe Swedish Competition Authority filed a
summons with the Stockholm District Court
against Swedish Match North Europe AB
requesting that the company pay nearly
SEK 38 million in administrative fines for
abusing its dominant position. From June
2012 to April 2013, Swedish Match North
Europe implemented a mandatory system
for shelf labelling in snus refrigerators,
which limited competitors’ ability to
communicate their brands and prices.
[Ref no.: 815/2014]
Active investigation: Abuse of dominant position – exclusion of competitorDuring 2014, the Swedish Competition
Authority continued to investigate the
alleged abuse of a dominant position in the
market for securities trading services in the
Nordic region. A major company that pro-
vides securities trading services is suspec-
ted of preventing a minor competitor from
placing equipment close to the customers’
trading equipment by putting pressure on a
data centre supplier. This may have raised
the entry barriers and reduced competition
in the relevant markets. Active investigation.
[Ref no.: 629/2010]
Anti-competitive public sales activities
Dismissal due to corrective measures taken during the investigation: Helsingborg Municipality – Inport Intelligent Port Systems AB The Swedish Competition Authority
investigated whether InPort’s sales activi-
ties concerning logistics solutions for port
operations could have constituted a
violation of the Competition Act’s rules
governing anti-competitive public sales
activities. After the municipal company the
Port of Helsingborg sold all of its shares in
its InPort subsidiary, the Swedish Competi-
tion Authority concluded its investigation
and closed the case. [Ref no.: 535/2012]
Active investigation: Municipal association Tolkförmedling Väst Following market contacts and an analysis
of the municipal association’s sales activi-
ties, the Swedish Competition Authority
resumed its investigation of Tolkförmedling
Väst (a provider of translation and interpre-
ting services). The Swedish Competition
Authority is investigating whether the muni-
cipal association’s sales of intermediation
and translation services to parties other
than the association’s members prevented
competition from private entities by
leveraging its position as a public entity.
Active investigation. [Ref. no.: 363/2013]
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 23
Dismissed case: Svenska Spel – establishment of sports barsDuring the year, the Swedish Competition
Authority investigated whether AB Svenska
Spels new sports bar venture, Sport Zone,
at the Casino Cosmopol casinos distorts
competition in the market for companies
that show sports games in public in their
respective locations. The Swedish Competi-
tion Authority gathered an overall impres-
sion of the market for companies that show
sports games in public and their customer
groups. The Swedish Competition Authority
also compared the price levels between
Sport Zone and other market entities.
Based on the investigation’s findings, the
Swedish Competition Authority determined
that there was no reason to conduct a more
thorough investigation, thus dismissing the
case. [Ref. no.: 391/2014]
Follow-up: Our enforcement efforts regarding public sales activities yielded positive effectsThe Stockholm District Court prohibited the
municipally owned company Skelleftebuss
AB from offering commissioned bus
services to any client other than Skellefteå
Municipality. According to the Swedish
Competition Authority’s follow-up of the
judgment, the prohibition has yielded
positive effects in the market.
[Ref. no.: 219/2014]
Swedish Competition Authority
Däckia Aktiebolag and Euromaster Aktiebolag22/11/2010. Ref. no.: 605/2010Petition for Däckia and Euro- master to pay SEK 4,397,000 and SEK 4,745,000 respectively, for anti-competitive collusion.
Räddningstjänsten Dala Mitt30/05/2011. Ref. no.: 392/2011Petition for Räddningstjänsten Dala Mitt to be prohibited from denying a competing company access to a training area subject to a fine of SEK 1 million for non-compliance.
Borås Municipality’s service office12/01/2012. Ref. no.: 45/2012Petition to prohibit the Service office in Borås from selling earthworks and engineering services to parties other than the municipality, subject to a fine of SEK 3 million for non-compliance.
AB Strömstads Badanstalt09/11/2012. Ref. no.: 628/2012Petition for AB Strömstads Badanstalt to be prohibited from operating anti-competitive gym and spa activities. A fine of SEK 2 million was also requested.
Swedbank Franchise AB17/06/2014. Ref. no.: 426/2014Petition to prohibit Swedbank Franchise’s acquisition of Svensk Fastighetsförmedling. A fine of SEK 250 million was also requested if the transac-tion was completed.
Stockholm District Court
21/01/2014. (T 18896-10)The District Court upheld the Swedish Competition Authority’s petition and ordered Däckia Aktiebolag to pay and an administrative fine of SEK 1,283,000 and Euromaster Aktiebolag to pay SEK 1,196,000.
30/01/2013. (T 7924-11)The District Court rejected the case. The Swedish Competition Authority appealed the matter to the Market Court.
31/03/2014. (T 911-12)The District Court sided with the Swedish Competition Authority and prohibited the activities.
09/04/2014. (T 16810-12)The District Court did not uphold the claim . The Swedish Competition Authority appealed the matter to the Market Court.
16/12/2014. (T 3629-14)The District Court upheld the Swedish Competition Authori-ty’s petition. Swedbank Franchise appealed the matter to the Market Court.
Market Court
31/01/2014. (MD 2014:1, A1/13)The Market Court overturned the District Court’s ruling and prohibited Räddningstjänsten Dala Mitt’s practices subject to a fine of SEK 1 million for non-compliance, pursuant to the Swedish Competition Authority’s petition.
Currently awaiting hearing in the Market Court (A4/14)
Currently awaiting hearing in the Market Court (A5/14)
Currently awaiting hearing in the Market Court (A1/15)
24 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
Court decisions and judgments in 2014
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 25
Swedish Competition Act in briefThe Competition Act contains three prohibitions:» prohibition of anti-competitive cooperation» prohibition of the abuse of a dominant position» prohibition of anti-competitive public sales activities.
The Act also includes rules governing mergers.
SanctionsTo stop ongoing violations, the Swedish
Competition Authority may decide on an
injunction, with or without imposing fines
for non-compliance. The Swedish Competi-
tion Authority may also file an application
with the Stockholm District Court seeking
an order for the company to pay an
administrative fine. The Swedish Competi-
tion Authority is authorised to issue what
are termed 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, the Stockholm
District Court may prohibit the government,
a municipal authority or a county council
from engaging in a certain conduct in its
sales activities, punishable by fine. Munici-
pal authorities and county councils may
also be banned from conducting certain
activities. Following an action brought by
the Swedish Competition Authority, the
Stockholm District Court may prohibit
mergers or decide on less interventionist
measures to prevent the adverse effects of
the merger.
26 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
The Swedish Competition Authority’s supervision of the Transparency ActThe Transparency Act is based on state aid
rules and imposes requirements on dis-
closures, predominantly in publicly owned
or financed companies. The Swedish
Competition Authority ensures compliance
with the Act. In 2013, the Swedish Competi-
tion Authority concluded that Sweden did
not have to submit a report to the European
Commission since the state and municipali-
ties did not control any manufacturing
companies whose transparency disclosures
are subject to this obligation. The Swedish
Competition Authority’s investigation
indicates that the situation in Sweden
remains unchanged, which it informed the
European Commission and Swedish
Government Offices of in 2014.
[Ref. no.: 234/2014]
Our stakeholders’ views on the implementation of the Competition ActOur Appropriation Directions for 2014
stipulate that we are to report and com-
ment on the views of our stakeholders
regarding our law enforcement practices.
For the 22nd consecutive year, the Swedish
Competition Authority conducted a stake-
holder survey specifically addressing the
implementation of the Competition Act.
The stakeholders that were surveyed were:
large companies (200 employees or more),
SMEs (less than 200 employees), trade
associations, municipalities and county
councils, corporate lawyers and the group
comprising public authorities and agencies.
These findings are used when prioritising
information initiatives and other activities
for the coming year. The survey was con-
ducted by Institutet för kvalitetsindikatorer.
EffectsAll stakeholder groups remain highly
favourable to competition, according to 97
per cent of those surveyed. A vast majority
believe that intentional violations the
Competition Act do occur to some degree.
Among those who believe that the Swedish
Competition Authority proactively counter-
acts serious violations of the competition
rules, the percentage of favourable respon-
ses from trade associations and authorities
and agencies has increased. For other
groups, the results remained unchanged
compared with 2013.
AttitudesThe share of those with a positive inclina-
tion to the competition legislation ranged
from 44 per cent (SMEs) to 69 per cent
(trade associations). In the preceding year,
the share with a positive inclination ranged
from 47 per cent (SMEs) to 68 per cent (trade
associations). In terms of stakeholders’
views on how the Swedish Competition
Authority communicates its prioritisation
strategy for its cases, 73 per cent of respon-
dents said that it was favourable, which is
an increase on last year.
ConfidenceWhen benchmarking the various stakehol-
der groups, 66 per cent responded that they
have a high level of confidence in the Swedish
Competition Authority; an increase of 4 per
cent. With the exception of corporate
lawyers and trade associations, the percen-
tage responding that they have a high level
of confidence has increased among all
stakeholder groups. Among those with a
high level of confidence, the share is highest
among authorities and agencies (76 per
cent) and lowest among SMEs (55 per cent).
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 27
Our stakeholders’ assessment of the Swedish Competition Authority’s case management, per cent
2014 2013 2012 Mergers Pos Neg Pos Neg Pos Neg
Made contact quickly and easily 91 0 89 3 94 0Service 87 0 91 3 88 0Expertise and knowledge of staff 55 9 74 6 56 9Understanding of your case/your query 60 16 60 9 65 6Information about how the case would proceed 54 7 49 9 56 9Quick/straightforward information about the progress of the case 62 9 51 3 56 9Decision was clear and well-reasoned 65 4 66 3 85 0Overall opinion of how your case was handled 75 2 80 0 77 0Would you contact the Swedish Competition Authority again? 63 7 71 6 94 3
2014 2013 2012 Competition and procurement cases Pos Neg Pos Neg Pos Neg
Made contact quickly and easily 70 11 61 11 71 11Service 79 6 65 9 69 10Expertise and knowledge of staff 66 9 56 11 51 13Understanding of your case/your query 62 16 46 25 45 24Information about how the case would proceed 46 18 40 19 38 21Quick/straightforward information about the progress of the case 49 17 40 21 42 26Decision was clear and well-reasoned 52 16 33 19 29 34Overall opinion of how your case was handled 66 15 49 24 43 24 Would you contact the Swedish Competition Authority again? 72 14 62 18 66 15
28 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
Assessment of the Swedish Competition Authority’s case managementIn terms of parties in merger cases, three
quarters of respondents gave a positive
overall assessment of how the Swedish
Competition Authority managed the cases
in question. They have a positive view of
the Swedish Competition Authority’s
accessibility and of the service of our staff.
The respondents gave somewhat lower
marks regarding our management of cases
in terms of information, clarity, understand-
ing and expertise. The greatest difference
compared with the preceding year’s results
are found in the assessment of staff
expertise, with a decline of 19 percentage
points in the share of positive responses,
and in the assessment of the speed and ease
with which they were supplied with a
decision or information, with an increase of
11 percentage points in the share of positive
responses.
The share of positive responses in both
of these matters is now back at the same
levels as in 2012. Although 16 per cent
perceived the understanding of the case at
hand as being poor, the share of poor marks
for the other aspects of case-management
falls below 10 per cent.
Improvement measures One of the Swedish Competition Authority’s
tasks is to detect obstacles to effective com-
petition in the public and private sectors.
We are to present proposals for pro-compe-
titive measures and for regulatory reform,
as well as monitor developments in
competition. We present our proposals for
improvement measures in reports, notices
to the government and in responses to
official consultations. We also provide
perspectives to other public authorities that
seek our views on specific investigations or
amendments to the regulatory framework.
ReportsIn our reports, we analyse how different
markets work and submit proposals for
improvement measures.
Charting the sales activities of
municipal companies
The Swedish Competition Authority has
charted the sales activities of municipal
companies. The aim of the project was to
identify, quantify and visualise the areas
of conflict between private and public
enterprises. Under the project, selected
municipal companies were asked to
describe what they sell and to whom,
among other questions. The companies also
answered whether they face competition
from private companies, what pricing
strategies they apply for sales and how
often they have submitted bids in public
procurement processes.
The Swedish Competition Authority’s
conclusions indicate that municipal
companies are increasing in number, that
sales are not declining and that the compa-
nies feel that they face intense competition
from private companies. Accordingly, the
Swedish Competition Authority does not
believe that the areas of conflict between
private companies and public organisations
are declining; on the contrary, it is enduring
and diversifying. The Swedish Competition
Authority concluded that there is a lack of
empirical research on the effects of how
municipal sales activities are conducted in
competitive markets. Report series 2014:3
Market entry and competition
among healthcare clinics
– on quality-based competition and
economic terms and conditions
In its report, the Swedish Competition
Authority concludes that there is potential
for quality-based competition throughout
much of the country. In areas where access
is limited, there is less opportunity for
choosing a healthcare clinic. The design of
the compensation system and breadth of
the duties play a significant role in the
presence and results of healthcare clinics
within the County Councils’ various care
choice systems in the field of primary care.
Report series 2014:2
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 29
Official notices to the governmentFollowing an investigation, the Swedish
Competition Authority was able to conclude
that the recently amended rules governing
local activity support (known as LOK
support) appeared to limit the options for
private companies to compete with the
Swedish Sports Confederation’s online
administration system, IdrottOnline. The
Swedish Competition Authority under-
scored that the government should provide
guidance to the Swedish Sports Confedera-
tion to ensure that the rules are designed to
prevent the associations that use adminis-
tration systems other than IdrottOnline
from being placed at a disadvantage and
not to limit the ability of other administra-
tion systems to compete with IdrottOnline.
Responses to official consultationsBy commenting on proposals made in
reports and other inquiries, we can assist
the government and other agencies in the
preparation of proposals and decisions.
Among the most important official
consultations made by the Swedish Compe-
tition Authority in 2014 were several
responses in the field of financial markets.
In summary, these responses reflect the
Swedish Competition Authority’s aim to
prevent unnecessary entry barriers from
being imposed in conjunction with a
necessary tightening of the regulation of the
financial markets (Ref. no.: 337/2014 and
620/2014). In several official consultations,
the Swedish Competition Authority also
submitted opinions on the regulation of
electric utilities (Ref. no.: 87/2014 and
243/2014). Corporate framework conditions
influence competition in various respects.
During the year, among other actions, the
Swedish Competition Authority backed the
Planning and Building Act appeal investiga-
tion’s proposal that aims to expedite
processing times in the planning and
building process (Ref. no.: 260/2014).
In a consultation concerning the Swedish
Committee on Corporate Taxation’s final
report, entitled Neutral Corporate Tax, the
Swedish Competition Authority was
favourable to the attempt to reduce the tax
difference between shareholders’ equity
and loans raised (Ref. no.: 451/2014).
In the supervision area, the Swedish
Competition Authority adopted a positive
position on the proposal for a new Patent
and Market Court. Under the proposal,
cases of a competition law nature would in
the first and second instance be heard in
special courts, which would be part of the
Stockholm District Court and the Svea Court
of Appeal respectively (Ref. no.: 21/2014). However, the Swedish Competition Authority
did not back the Public Sector Information
investigation’s proposal that the Swedish
Competition Authority be tasked with
ensuring compliance with the rules
governing the re-use of public administra-
tion documents (Ref. no.: 200/2014).
Knowledge and communicationThe Swedish Competition Authority is to
promote a competition-centred approach
and, where appropriate, provide companies
and other relevant parties with information
regarding important decisions, how we
enforce the rules and the contents of these
rules. Over the course of the year, we
conducted a number of different initiatives
to disseminate knowledge about competi-
tion issues to our stakeholders.
30 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
Konkurrensverket.seOur website, which received nearly 900,000
page views in 2014, is the Swedish Competi-
tion Authority’s primary channel for
external information.
During the autumn of 2014, in a bid to
further improve knowledge about our
operation and increase accessibility among
our target groups, the Authority worked on
developing a new website. On the new
website, which was launched in December,
we gather information on supervision and
support resources related to competition
and procurement matters. The website,
which has also been given a clearer visual
image, is now completely responsive and
adapts to the user’s screen size. Accordingly,
the Swedish Competition Authority’s digital
communications are highly consistent with
the rapid pace of mobile advancements.
Almedalen WeekDuring this year’s Almedalen Week on the
island of Gotland, the Swedish Competition
Authority organized five seminars on 3 July
covering the overarching theme of procure-
ment for welfare. The seminars, which
were also broadcast live via the Swedish
Competition Authority’s website, were
popular and enjoyed a high level of attend-
ance. A total of 1,255 individuals participa-
ted in the five seminars, either live on site
or via the webcasts.
Electronic newsletter:Procurement and competitionThe electronic newsletter on competition is
published once a month through the month
of July. As of August, the Swedish Competi-
tion Authority issues a consolidated
newsletter on both procurement and
competition matters and addresses support
and supervision matters. The newsletter is
issued every other week and provides more
than 3,000 subscribers with up-to-date
information. The newsletters are popular
among readers, which is attested to by the
fact that they enjoy high open rates.
Social mediaThe Swedish Competition Authority’s
presence in social media adds to the
information and communication channels
that are available via the website. We have
used such tools as Twitter in our external
communications, which supplements our
communication of news, presentations and
career opportunities, as well as generating
attention and guiding traffic to the Swedish
Competition Authority’s other communica-
tion channels. The Swedish Competition
Authority’s has also initiated an effort to
gain greater exposure in such channels as
LinkedIn, and begun developing communi-
cations in motion graphics.
Information meetingsDuring the year, employees have participa-
ted in a host of seminars, courses and
meetings with purchasers and suppliers at
various locations nationwide. The aim has
been to provide information on legislation
and our supervision and support tasks.
During the year, the Swedish Competition
Authority’s employees have held speeches
and presentations in more than 170
different forums. During the autumn of
2014, the Swedish Competition Authority
also launched a series of breakfast semi-
nars that were also broadcast live on our
website.
The breakfast seminars addressed such
topics as competition in the field of primary
care. A total of just over 250 individuals
participated in these six seminars.
Focus on combating detrimental competitionThe Swedish Competition Authority is
involved in a network of government
agencies and trade associations that work
together to take action against detrimental
competition in public procurement. The
efforts are coordinated by the Swedish Tax
Agency. Within the framework of the
network, an opinion piece was published
during the autumn and Swedish Competi-
tion Authority staff have participated in
several conferences and seminars. In
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 31
November, a seminar was organised on the
topic of public procurement and the
potential for competition on fair terms. The
discussion aimed to draw the public’s and
companies’ attention to problems related to
various forms of irregularities in public
procurement and how these may affect
competition.
Our stakeholders’ knowledge of the Competition ActOur Appropriation Directions for 2014
stipulate that we are to report and com-
ment on our stakeholders’ knowledge of
the regulatory framework, including the
Competition Act. For the 22nd consecutive
year, the Swedish Competition Authority
has conducted a stakeholder survey.
The stakeholders that were surveyed
were: large companies (200 employees or
more), SMEs (less than 200 employees),
trade associations, municipal authorities
and county councils, corporate lawyers and
the group comprising public authorities and
agencies. These findings are used when
prioritising information initiatives and
other activities for the coming year. The
survey was conducted by Institutet för
kvalitetsindikatorer.
Awareness Awareness of the Competition
Act remains high among all stakeholder
groups. As an overall group, 94 per cent
responded that they are familiar with or
have heard of the Act. The greatest increase
in familiarity was among public authorities
and agencies, among which the share incre-
ased by 14 percentage points.
The share of those who are aware that
the Swedish Competition Authority is
responsible for the enforcement of the
Competition Act also increased somewhat.
On average, 61 per cent responded that the
Swedish Competition Authority is the autho-
rity in charge. As in previous years, aware-
ness of what authority is in charge of en-
forcing the Competition Act was the lowest
among SMEs at 34 per cent, and highest
among corporate lawyers at 88 per cent.
Knowledge Knowledge of the principal are-
as of the Competition Act is favourable, with
the exception of knowledge that companies
can be exempted from administrative fines;
a fact to which slightly less than half of
those surveyed responded correctly.
The weighted average for the share of
correct responses to the questions of
knowledge increased in four of the stake-
holder groups and was essentially unchang-
ed in the other stakeholder groups. The
greatest increase in familiarity occurred in
the group public authorities and agencies,
among which the share of respondents who
gave the correct answers increased for all
questions regarding familiarity.
Knowledge of the Competition Act, per cent 2014 2013 2012
Companies with 200 or more employees 72 72 71 Companies with less than 200 employees 80 77 76 Municipalities/county councils 79 75 74Corporate lawyers 88 84 85Trade associations 83 84 85 Public authorities and agencies 79 65 65
32 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT COMPETITION
CollaborationsThe Swedish Competition Authority strives
to maintain productive collaborations with
government agencies and other parties.
We must also consult with the authorities
that are affected by our proposals for
improvement measures.
Consultations held in the field of competitionOn certain matters, there are several
authorities, committees and investigators
that must consult with the Swedish Compe-
tition Authority. Described below are some
of the formal consultations in the field of
competition that were held in 2014.
» Between 2011 and 2014, the Swedish
Competition Authority consulted with
the Swedish Transport Analysis Agency
on a regular basis on the government
assignment to assess the new Public
Transport Act and the opening of the
railway market. [Ref. no.: 217/2011]
» The Swedish Competition Authority
participated in a reference group
established by the Swedish Transport
Analysis Agency for its government
assignment on the transportation of
passengers with special needs.
[Ref. no.: 4/2014]
» The Swedish Transport Agency must
consult with the Swedish Competition
Authority on competition matters and
report improprieties. Two formal
consultations took place during the year,
as well as several interactions by phone
or e-mail.
» The Swedish Broadcasting Authority
must consult with the Swedish Competi-
tion Authority ahead of decisions on
issuing permits to broadcast TV, search-
able Teletext services and commercial
radio. [Ref. no.: 127/2014]
» The Swedish Energy Markets Inspector-
ate must collaborate with the Swedish
Competition Authority in particular on
matters concerning customer issues and
market oversight of the competitive
energy markets. [Ref. no.: 140/2014]
» The Swedish Competition Authority must
submit statements on competition
matters to the Swedish Post and Telecom
Authority. [Ref. no.: 704/2014]
Other collaborationsThe Swedish Competition Authority strives
to maintain productive collaborations with
government agencies, including the Swedish
County Councils, and other parties. We
must also consult with the authorities that
are affected by our proposals for improve-
ment measures. Agencies with which we
have collaborated during the year include
the Swedish Consumer Agency, the Swedish
Tax Agency and the Swedish Agency for
Public Management. The other parties with
which we have collaborated include the
Swedish Anti-Corruption Institute and
several different trade associations. In
terms of overcoming issues that affect legal
areas other than those overseen by the
Swedish Competition Authority, but
nonetheless influence competition, we often
interact primarily with the Swedish Tax
Agency, the Swedish National Anti-Corrup-
tion Unit and the Swedish Police’s National
Corruption Group.
In addition, Swedish Competition
Authority employees also participate in an
expert capacity in public investigations,
including the official report on oversight
regarding compensation to municipalities
and county councils for what is termed
latent VAT (Fi 2014:07), the official report on
railway organisations (N 2013:02), the
official report on the evaluation of the
broadband strategy (N 2012:06), the official
pharmaceutical and pharmacy report
(S2011:07), the report on a modern regula-
tion of passenger and freight transport on
railways (Ju 2013:13), The appeal report (S
2013:15), and the report on the future of
municipal laws (Fi 2012:07).
COMPETITION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 33
The Swedish Competition Authority strives to maintain productive collaborations with government agencies, including the Swedish County Councils, and other parties. We must also consult with the authorities that are affected by our proposals for improvement measures.
34 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Public procurementPublic procurement plays a key strategic role and influences how to make the best and most effective use of public resources.
We have submitted proposals for improvement measures to the government in a bid to
address cases in which the prevailing legislation counteracts an effective public procure-
ment process. Read about public procurement on the following pages.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 35
36 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Public procurementThe consolidated procurement support functionIn 2014, the national procurement support
function was consolidated and developed
under the Swedish Competition Authority.
The process was completed in phases. The
responsibility for innovation procurements
was integrated on 1 January. The Swedish
Legal, Financial and Administrative
Services Agency’s procurement support
function was transferred on 1 March. The
Swedish Environmental Management
Council’s procurement support resources
were taken over on 1 July.
Efforts to consolidate the procurement
support function have focused on integrat-
ing the operations, capitalising on the
shared knowledge available, and maintain-
ing and improving the quality of the work
conducted under the procurement support
function. This has manifested itself in a
broader array of contact channels with our
target groups and enhanced accessibility in
the form of the more generous opening
hours of Swedish Competition Authority’s
telephone support service. A survey was
conducted to gain an understanding of how
the target groups experienced the procure-
ment support that had formerly been
offered by the other organisations, but also
what the target groups’ expectations were
for the consolidated support function. This
served as a useful basis for drafting the
Swedish Competition Authority’s prioritis-
ation policy and the strategy behind its
work during the year.
The Swedish Competition Authority has
capitalised on and developed the Swedish
Environmental Management Council’s
accumulated knowledge about public
procurement as a strategic tool to ensure a
sustainable development.
The Swedish Competition Authority’s
initiatives affect a number of different
target groups. The consolidated procure-
ment support function achieves the best
effect when we work together with others
and focus on the right priorities. A review
has been initiated of how the Swedish
Competition Authority can best continue
working with forums and networks to
spread knowledge among and engage in
discussions with its target groups. Examples
of forums and networks that are now being
discussed include the forum for strategic
purchasing (examples of themes: category
control, procurement methods, monitoring
and contract management), the forum for
environmental considerations, the forum
for social considerations, the network for
purchasing managers, the network for
chemical matters (formerly the Swedish
Chemical Council) and the network for
electronic procurement.
The strategic significance of procurementPublic procurement is a strategic resource
that can be used to achieve social objectives
and other values that are key to the opera-
tions of contracting authorities. This
particularly applies to goods, services and
construction contracts that are purchased
in vast amounts on an annual basis.
Although each individual procurement
process has its own unique attributes, the
strategic choices have similarities. The
conclusions reached based on the careful
considerations that an authority makes
ahead of a procurement can play a signific-
ant role in achieving desirable social
objectives, such as sustainable development,
innovation and more opportunities for
SMEs to participate in public procurement
processes.
Examples of how purchasing can add
value to an organisation include higher
quality, cost-effectiveness and savings.
By applying carefully considered strategies,
the authority’s procurement process can be
conducted with greater efficiency and make
better use of public funds.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 37
The Swedish Competition Authority can
assist contracting authorities in identifying
procurement strategy methods and
methods for defining their objectives. We
can also help identify how procurements
can help in developing the authority’s
operations and contract management.
Other examples of support initiatives
include providing assistance with demand
and market analyses, assignment of
responsibility and roles, as well as how to
organise the procurement process.
Procurement lawThe regulatory framework governing public
procurement is based on EU directives. It is
vast and can occasionally seem inacces-
sible. Furthermore, precedents that could
serve as guidance are lacking in several
areas. The Swedish Competition Authority’s
support function provides information on
the options available under to the law,
concrete guidance and support in matters
concerning the application of Swedish
legislation.
The procurement support function is
also geared toward suppliers. A better
understanding of the regulatory framework
among suppliers enhances the potential for
effective competition since more suppliers
can submit bids in public procurement
processes. The aim is for the support
initiatives to lead to the contracting authori-
ties and suppliers understanding the
options available to them under procure-
ment law, thus yielding higher quality in
requests for proposal and tenders. This will,
in turn, result in better public contracts,
fewer appeals and fewer protracted legal
processes.
Many parties contact us for support.
The process of providing support by phone
and e-mail corresponds to approximately
1.5 fulltime positions. The most common
questions concern direct awards of con-
tract, environmental criteria, the applic-
ation of statutory requirements and
withdrawal from a procurement process.
However, the questions cover a broad range
of topics and vary greatly in terms of
complexity.
Environmental considerations and sustainable procurement practicesA prioritised task has been to identity the
areas and social objectives for which
procurement can be employed as a strategic
and effective tool. Having a consolidated
procurement support function enables us to
more clearly ensure that sustainability is
taken into account at every stage of the
process – prior to, during and after a public
procurement process. It also allows the
public procurement process to be better
used as a strategic tool in ensuring a
sustainable social development.
The possibility under the procurement
rules to impose environmental require-
ments enables contracting authorities to
help contribute to sustainable development
and to achieving Sweden’s national en-
vironmental quality objectives.
The Swedish Competition Authority’s
support function helps contracting authori-
ties that want to impose environmental
requirements navigate their way through
the process. The basis for our support
initiatives includes European legislation on
energy and chemicals, as well as informa-
Having a consolidated procurement support function enables us to more clearly ensure that sustainability is taken into account at every stage of the process – prior to, during and after a public procurement process. It also allows the public procurement process to be better used as a strategic tool in ensuring a sustainable social development.
38 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
tion on the market availability of sustainable
goods, services and construction con-
tractors. The aim of the support initiatives
is to prompt more contracting authorities to
use procurement as a strategic instrument
to help achieve their environmental goals.
The Swedish Competition Authority
provides criteria to make it easier for
contracting authorities to impose environ-
mental consideration requirements. The
criteria, which are available in a database
via the Swedish Competition Authority’s
website, also facilitate access for suppliers
that want to participate in public procure-
ments processes. In addition, the Swedish
Competition Authority provides support
aimed at ensuring that the contracting
authorities monitor the environmental
requirements.
The interest in applying these types of
criteria is growing. Statistics indicate that
the number of documents downloaded
from the Swedish Competition Authority’s
criteria database rose by nearly 20 per cent
between the autumn of 2013 and the
autumn of 2014.
On 1 July, the Swedish Competition
Authority published guidelines for the
application of its sustainability criteria.
The guidelines stressed that authorities
have considerable flexibility in imposing
far-reaching environmental requirements
[Ref. no.: 307/2014].
A key element of future efforts on
sustainability is to develop approaches for
designing various procurement criteria.
Work on updating existing criteria on
sustainable procurement and developing
new ones continues.
The active management of these criteria
is an ongoing process that takes the shape
of external monitoring, communication,
advisory services and support, monitoring
of their application, adjustments and
identifying whether criteria need to be
updated.
The criteria are subsequently defined
with the help of teams of experts collabora-
ting with key stakeholders from the public
and private sectors, including purchasers,
suppliers, trade associations, environmen-
tal organisations and authorities. Where
possible and appropriate, the teams of
experts develop criteria on three levels:
basic, advanced and expert.
During the year, the process for deve-
loping new criteria and the active manage-
ment of existing criteria were both updated
and integrated into the new organization. Among other measures, the updates invol-
ved capitalising on the collective expertise
available at the Swedish Competition
Authority. Quality assurance work with the
help of teams of experts will continue in the
interest of ensuring that the sustainability
criteria are deeply embedded.
The consolidated procurement support
function can ensure that users can be
confident that the criteria are appropriate
and adapted to the prevailing laws and
rules. When the support and enforcement
departments are in consensus on the
application of rules, the Swedish Competi-
tion Authority can conduct support initiati-
ves with greater credibility and impact.
An effort is under way to develop a plan
that aims to establish the order of priority
in revising the criteria fields. The consolid-
ated procurement support function allows
a broad perspective to be taken when
developing the sustainability criteria. This
is relevant when, for example, drafting new
criteria for ensuring nontoxic preschools
environments, providing guidance in the
procurement of cleaning services, as well as when updating older informational material
from the Swedish Legal, Financial and
Administrative Services Agency and the
Swedish Environmental Management
Council.
In addition, the Swedish Competition
Authority collaborates on educational
initiatives aimed at disseminating informa-
tion on the criteria. The Swedish Competi-
tion Authority also exchanges experiences
related to criteria development with foreign
authorities within the framework of inter-
national cooperation. Our broad mandate
allows sustainability matters to be highligh-
ted in more forums than in the past.
Statistics on downloaded criteria documentsTotal in 2014 10 487Total, July–December 4 967Total, July–December 2013 4 163Increase from autumn 2013 to 2014 19,3 %
The following work was con-ducted in the autumn of 2014Active management/administration: 58 subgroups of a total of 129.Requirements adjusted: 116 of 697Requirements updated: 1
The Swedish Competition Authority provides criteria to make it easier for contracting authorities to impose environmental consideration requirements. The criteria, which are available in a database via the Swedish Competition Authority’s website, also facilitate access for suppliers that want to participate in public procurements procedures.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 39
40 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
The Swedish Competition Authority is currently developing criteria specific to the procurement of products for preschools. The main products encom-passed by the Nontoxic Preschools project are furniture, toys and textiles, as well as kitchen and serving equipment.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 41
Nontoxic preschools
The Swedish Competition Authority has
been commissioned by the government to
help municipalities draft procurement crite-
ria and to develop a comprehensive support
resource to ensure a nontoxic preschool
system (government decision 26/06/2014
M2014/1604/Ke). Reducing everyday
chemical risks is one step on the path to
achieving the Swedish Parliament’s
environmental quality objective of a non-
toxic environment. Children are considered
particularly sensitive to exposure to
hazardous chemicals, such as endocrine
disruptors. There is considerable interest
surrounding children’s exposure to chemi-
cals in preschools. In 2013, prior to the
transition to the Swedish Competition
Authority, the Swedish Environmental Management Council launched the Nontoxic
Preschools project on behalf of the Swedish
Chemicals Agency, and produced a prelimi-
nary study that will form the basis for the
work on outlining criteria.
The Swedish Competition Authority is
currently developing criteria specific to the
procurement of products for preschools
(Ref. no.: 481/2014). The main products
encompassed by the Nontoxic Preschools
project are furniture, toys and textiles, as
well as kitchen and serving equipment.
In addition, the Swedish Competition
Authority is developing guidance geared
toward purchasers and a guide geared
toward preschool staff. The project is
scheduled for completion in May 2015, with
communications initiatives in tandem with
the Swedish Chemicals Agency proceeding
throughout 2015.
The energy efficiency-
enhancement project
The Swedish Competition Authority is
conducting a project aimed at completing
the energy efficiency-enhancement assign-
ment with which the Swedish Environmen-
tal Management Council was tasked from
2010-2014. The aim of the project is to
facilitate public sector usage of procure-
ment as a means to achieve energy efficien-
cy. The project is being financed by the
Swedish Energy Agency and involves
continuously updating the Swedish Compe-
tition Authority’s website for energy-
efficient products, keeping the energy
criteria updated, participating in seminars
on energy-efficiency enhancements, as well
as producing benefit calculations and other
educational material.
The project also includes developing
indicators for the energy consumption of
lighting at the construction level for such
structures as offices, schools and healthcare
facilities, which constitute the largest
structures under the direction of municipa-
lities and county councils. A tool has been
developed under the project that helps
ensure that a strategic approach is taken
during the procurement process in the
interest of achieving energy-efficiency
enhancements regarding carbon emissions.
Information and assistance resources are
also being produced for authorities concer-
ning the ordinance (2014:480) on authori-
ties’ procurement of energy-efficient goods,
services and buildings. The Swedish Com-
petition Authority has initiated discussions
with the Swedish National Procurement
Services on energy-efficiency enhance-
ments in Swedish National Procurement
Agreements and will continuously work on
lifecycle cost analyses (LCCs) during the
autumn with a focus on guidance resources
for lighting.
The Swedish Competition Authority has initiated discussions with the Swedish National Procurement Services on energy-efficiency enhancements in Swedish National Procurement Agreements and will continuously work on lifecycle cost analyses (LCCs) during the autumn with a focus on guideli-nes for lighting.
42 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Skills-enhancing initiatives for
the public procurement of food
Work on this government commissioned
project (L2014/1808/DL) was conducted
during the autumn of 2014 and will
continue in 2015.
The core purpose of the project is to
promote verification, monitoring and
evaluation options for both buyers and
sellers. The project aims to enable contrac-
ting authorities and suppliers to continue to
raise their level of expertise, with a primary
focus on applying procurement criteria in
the environmental, animal protection and
corporate social responsibility fields in a
bid to improve the food procurement
process. The effort is also meant to result in
greater resource efficiency in the bidding
process, as well as improving the possibility
of a level playing field for suppliers by
providing a better basis for decision-making
when awarding contracts. Planning is
under way to hold information meetings for
buyers and sellers in a bid to help improve
practical aspects of the work.
[Ref. no.: 461/2014].
Social considerations and sustainable procurementUnder the procurement regulations,
contracting authorities have the ability to
impose requirements on social considera-
tions when engaging in procurement, which
can help achieve key social objectives and
improve labour terms and conditions for
employees who produce contracted goods,
and provide services and construction
work.
In the Swedish Competition Authority’s
experience, there is uncertainty as to what
types of requirements are consistent with
the laws and regulations governing procure-
ment. The support initiatives serve to
increase knowledge regarding the options
that are available for imposing social
consideration requirements in public
procurement processes and to prompt more
authorities to impose such requirements in
their procurement processes. The inclusion
of at-risk groups in society, such as indivi-
duals with disabilities, and corporate social
responsibility (CSR) are a few examples of
areas in which support is being provided.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 43
Social consideration requirements may also
include stipulations regarding, for example,
gender equality, equal treatment and terms
and conditions similar to those found in a
collective agreement.
Contracting authorities may also impose
ethical requirements that ensure human
rights and fair trade in the supply chain. In
addition, the Swedish Competition Authority
provides support aimed at ensuring that
contracting authorities can monitor the
social consideration requirements. Among
other measures, the Swedish Competition
Authority is in discussions with representa-
tives from the county councils on the
development of the Monitoring Portal.
An example of the broader effort on
social consideration related to public
procurement is the current project on the
ability to impose terms and conditions
similar to those found in a collective
agreement in public procurement proces-
ses. The core point of the project is to
investigate the degree of flexibility availa-
ble to contracting authorities to impose
requirements that are consistent with the
terms and conditions stipulated in various
Swedish collective agreements and to offer
concrete advice and guidelines as to how
said requirements could be formulated,
governed and monitored.
The objective of the project is to achieve
greater clarity concerning the legal flexibili-
ty to impose labour law terms and condi-
tions in procurement processes. During the
course of the project, stakeholders will be
invited to a consultation and an external
reference group will be appointed.
[Ref. no.: 514/2014].
The Swedish Competition Authority has
also financed a commissioned research
project on this issue. [Ref. no.: 569/2014]
44 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Procurement methodologyDuring the year, the Swedish Competition
Authority initiated a number of projects
focusing on practical procurement metho-
dology. The work centres on describing how
the process works in practice, with particu-
lar emphasis on the elements not associated
with law. . As a pilot area, we selected the
procurement of cleaning services, since it is
an easy area to delineate and most contract-
ing authorities employ such services, in
addition to which it is perceived as being a
field with a substantial risk for problems.
The method that is selected on the basis of
the project’s findings will be applied in
additional areas.
Initiatives in the healthcare sectorWork on operating a national database for
advertising the system of choice and
developing and actively providing guidance
for procurements in the health and social
care sector was taken over from the Swedish
Legal, Financial and Administrative Services
Agency and has carried on under the
administration of the Swedish Competition
Authority. A government commissioned
assignment to develop a guidance resource
for the procurement of housing for the
elderly has been reported to the govern-
ment. The task of conducting educational
initiatives on the procurement of health
and social care services for the elderly also
continued. [Ref. no.: 247/2014 and
Ref. no.: 278/2014]
The Swedish Competition Authority has
launched an investigation to highlight how
a system of choice can be achieved in the
home care sector when applying the Public
Procurement Act, and begun charting
municipalities’ procurement of facilities for
care or housing facilities for children and
adolescents.
Innovation procurementInnovation is one of the most important
factors driving future growth. Authorities
can use the public procurement process to
stimulate innovation. Innovation procure-
ment practices help create greater econo-
mic, environmental and social benefits.
The demand for innovative solutions by
contracting authorities also helps trigger
the emergence and incorporation of new
companies. Innovation procurement
practices can also yield greater social
returns on public investments since new
product development achievements are
harnessed by publicly financed businesses.
The Swedish Competition Authority took
over control of innovation procurement
from VINNOVA at year-end 2013. The
Swedish Competition Authority provides
concrete methodology and expertise
support services for innovation procure-
ment practices to make the process easier
for contracting authorities and suppliers.
The support initiatives in the area aim to
both increase knowledge about the oppor-
tunities and means for best conducting
innovation procurement practices and to
prompt more contracting authorities to
conduct innovation procurement practices.
The Swedish Competition Authority has
reached an agreement and designed a joint
action plan with VINNOVA in a bid to
harness the expertise of both of our
authorities in our outreach to common
target groups in these matters. The aim is to
encourage politicians and decision-makers
at the strategic level to promote innovation
through procurement and to provide
contracting authorities and companies with
concrete support in their innovation
procurement. This will help improve the
means for harnessing the potential for
innovation procurement in Sweden and
allow wider user of innovation procure-
ment practices.
The initiatives during the autumn of
2014 paid particular attention to conducting regional inspiration seminars with VINNOVA,
the Swedish Energy Agency and the
Swedish Association of Local Authorities
and Regions.
The Swedish Competition Authority also
provides contracting authorities and
departments with direct support and
guidance in individual innovation procure-
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 45
ment projects. In this context, workshops
were conducted with such authorities and
departments as the Swedish national grid,
the Swedish Civil Contingencies Agency, the
Swedish Maritime Administration, the
Geological Survey of Sweden and the Swedish
Agency for Economic and Regional Growth.
Furthermore, the Swedish Competition
Authority has taken over and developed
work with the Swedish Environmental
Management Council’s Think Tank project,
which serves in part as a forum to discuss
innovative proposals for what are known as
transformative solutions that help use
public procurement to reduce the consump-
tion of resources and lower emissions of
carbon dioxide.
Participation of small and medium-sized enterprises (SMEs) in public procurement SMEs account for a substantial share of net
turnover, added value and employment in
the business community. Yet there remain
certain recurring challenges for SMEs to
participate in the tendering process during
public procurement processes. The greatest
obstacles to these companies participating
in procurement lies in the selection process.
In addition, participating in public procure-
ment processes is often associated with
substantial administrative burdens that
impede SMEs.
By improving the design of the procure-
ment process, contracting authorities can
endeavour to capitalise on the advantages
resulting from increased competition
among SMEs. These companies can also
help achieve other key social objectives by
harnessing their potential for growth, job
opportunities and innovation during public
procurement processes.
The Swedish Competition Authority’s
support initiatives in this area are aimed at
informing contracting authorities about
how SMEs can contribute during public
procurement processes.
This involves, for example, demonstra-
ting how the contracting authorities can
take SMEs into consideration or provide
support in matters of dividing contracts into
subcontracts, as well as identifying reason-
able qualification and financial require-ments. The Swedish Competition Authority’s
support initiatives are also geared toward
suppliers in a bid to increase awareness of
what is involved in conducting transactions
with authorities.
The Swedish Competition Authority is
conducting a project that will investigate
and propose initiatives to make it easier for
SMEs to participate in public procurement
processes. [Ref. no.: 761/2014]
Within the framework of this project, the
Swedish Competition Authority will also
report on how the perspective of smaller
suppliers has been integrated into the
authority’s work. The Swedish Competition
Authority maintains a healthy dialogue
with various trade associations to accumu-
late knowledge and experience, while
keeping the perspective of SMEs, among
others, in focus. Our procurement support
efforts geared toward contracting authori-
ties, departments and suppliers often
emphasise the “SME perspective” (meaning
the perspective of small and medium-sized
enterprises). Among other actions taken
related to this issue, the Swedish Competi-
tion Authority participated in the procure-
ment days during the spring held by the
West Sweden Chamber of Commerce and
Norrbotten Chamber of Commerce, and in
the KOMMEK trade fair in August.
The Swedish Competition Authority is a
member of the SIR network, which, among
other ventures, strives to facilitate the
participation of SMEs and non-profit
organisations in public procurement
rounds. The network is a forum at the
administrative level that serves to discuss
and exchange experiences on how to
improve the means for such participation.
The consolidated procurement support
function allows the Authority to proceed in
addressing these matters from a broader
perspective.
46 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Electronic purchasing process and standardisation effortsAn electronic purchasing process facilitates
every aspect of the procurement practice,
from preparatory analysis to follow-ups and
evaluation.
A comprehensive and properly designed
electronic purchasing process helps enhance
efficiency and yields ample opportunity to
consolidate the information for future
strategic consideration. It can also make it
easier for SMEs to submit bids in procure-
ment rounds since an electronic purchasing
process reduces administrative burdens,
which is important for these companies.
Standardisation is an important element
in efficiently managing the electronic
purchasing process, in terms of commerce
both in Sweden and internationally. To
achieve this, the Swedish Competition
Authority is collaborating with the Swedish
National Financial Management Authority
and the Swedish Association of Local
Authorities and Regions within the frame-
work of the Single Face to Industry (SFTI)
electronic standard. Greater systemisation
enables contracting authorities and
suppliers to facilitate purchasing practices
and maintain solid control of procurements
and purchasing, from the publication of a
contract notice to paying invoices and
monitoring. In 2014, the Swedish Competi-
tion Authority reported on a government
commissioned assignment regarding the
degree to which contracting authorities use
electronic communication for procurement
and e-purchases. The rate of response was
very high and indicated that there were
more contracting authorities than expected
that employ electronic procurement.
[Ref. no.: 759/2013]
Economics and statisticsStatistics show that public sector purchases
amount to SEK 538 billion and purchases
subject to procurement requirements to
SEK 600 billion. That is equal to one-fifth of
Sweden’s gross domestic product.
It is important for public sector organisa-
tions to be acutely aware of what they are
buying, how much they are spending and
from whom they are making purchases, not
just in their own interests but also in the
interests of the public. There is also
considerable interest in information on
categorising public purchases by sector and
on how purchases can be made with
greater efficiency. The Swedish Competition
Authority collects and processes statistics
on purchases and procurement practices.
We also evaluate the findings of completed
procurement processes and propose
regulatory amendments in order to achieve
a more effective public procurement
process.
The Swedish Competition Authority
conducts socioeconomic analyses and
investigations on public procurement.
These are conducted on our own initiative,
by government commission or through
international cooperation. We also monitor
the publication of new research in the field.
During the autumn, the Swedish Competi-
tion Authority made preparations to
develop support resources for strategic
purchasing methods that are tailored to the
public sector, such as category control as a
means of support for purchasing and cost
analysis, as well as support resources for
the analysis of life-cycle costs (LCCs). During
the autumn, the Swedish Competition
Authority also organised a Nordic workshop
on the theme of social requirements and
life-cycle costs.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 47
48 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Pre-emptive measures on anti-corruption and conflicts of interestBoth national and international experiences
demonstrate that there is a risk of detri-
mental and improper influences such as
conflicts of interest, corruption and anti-
competitive practices in public procure-
ment processes. Such influences cause an
improper and damaging use of public funds
and erode public confidence in the public
sector.
The Swedish Competition Authority
helps contracting authorities strengthen
their integrity and avoid detrimental and
improper influences.
These support initiatives primarily focus
on pre-emptive measures and the dissemi-
nation of information in collaboration with
other authorities and organisations.
We also provide guidance on exemptions
from the requirement to publish contract
notices, the enforcement of ordinances on
the exclusion of suppliers and the rejection
of bids. These exemptions and ordinances
offer effective protection for the contracting
authorities in their fight against detrimen-
tal and improper influences.
Government-commissioned procurement assignmentsIn 2014, the Swedish Competition Authority
worked on a number of government assign-
ments. The following is a selection of these
assignments:
» Assignment to evaluate the care choice
system in the field of primary care and
specialised outpatient care.
[Ref. no.: 517/2013]
» Assignment to hold training courses in
the procurement of health and medical
care for the elderly. [Ref. no.: 247/2014]
» Assignment to draft procurement criteria
for a nontoxic preschools.
[Ref. no.: 481/2014]
» Assignment to produce guidance for the
procurement of elderly housing.
[Ref. no.: 278/2014]
» Assignment to conduct a preliminary
study on electronic procurement.
[Ref. no.: 759/2013]
» Assignment to implement skills-enhan-
cing initiatives for the public procure-
ment of food. [Ref. no.: 461/2014]
Law enforcement and supervision in the field of procurementOur supervision activities remained priori-
tised in 2014, and the illegal direct award of
contracts was in focus. The Swedish Com-
petition Authority has continued to prioritise
the illegal direct award of contracts and
actions seeking administrative fines.
During the year, we submitted 15
summons applications seeking administra-
tive fines on our own initiative as well as
five applications for mandatory administra-
tive fines to the Administrative Court. In
addition, we processed and concluded 50
different cases under the Public Procure-
ment Act. We also enforced the Act on
System of Choice in the Public Sector.
Both national and international experiences demonstrate that there is a risk of detrimental and improper influences such as conflicts of interest, corruption and anti-competitive practices in public procurement rounds. Such influences cause an improper and damaging use of public funds and erode the public’s confidence in the public sector.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 49
Focus on communication in procurement supervisionOur pre-emptive efforts on information and
guidance are imperative in providing
businesses and purchasers with the proper
means to take the right approach from the
very beginning. Accordingly, in 2014, the
Swedish Competition Authority made a
dedicated effort to be straightforward in
our communication regarding the regula-
tory framework that we are in charge of
enforcing, our decisions, and how we assign
priority in our work. We drafted a new
prioritisation policy for our supervision
activities and an external communications
policy on supervision matters. Both
documents are available on our website,
which was modernised and re-launched
during the year.
In 2014, we also worked on further
clarifying our supervisory decisions and
our decisions concerning the dismissal of
cases. We also published four articles on
procurement supervision, and, in two
matters, linked supervisory decisions to
support initiatives by way of explanatory
texts on our website or the development of
guidance resources under our procurement
support function.
Decisions as a means of procurement supervisionDuring the year, the Swedish Competition
Authority’s enforcement department
worked on developing a far-reaching
procurement supervision function covering
all violations of the regulatory framework
governing procurement and the Act on
System of Choice in the Public Sector. Our
enforcement includes measures such as
supervision decisions.
These decisions serve to draw attention
to contracting authorities that fail to comply
with their obligation to apply the Public
Procurement Act or relevant procurement
legislation, but do not result in any adminis-
trative fines. Through discussions and by
working together, we have subsequently
been able to help these contracting authori-
ties identify procedures and systems to
make it easier to conduct a process properly.
These decisions also serve as concrete
guidance for other contracting authorities.
In addition, our supervision practices have
increased awareness of the regulatory
framework governing procurement. In
several cases, it has yielded better procedu-
res and self-correcting action.
During the year, we reached ten enforce-
ment decisions concerning violations of the
regulatory framework governing procure-
ment and two concerning the Act on System
of Choice in the Public Sector. Eight of our
enforcement decisions pertained in full or
in part to the illegal direct award of
contracts.
Administrative fines as a means of procurement supervision Since 2010, the Swedish Competition
Authority has had the possibility to bring an
action in court to impose administrative
fines on contracting authorities and
departments, including county councils and
government authorities that have carried
out illegal direct award of contracts. We
can seek administrative fines on our own
iniative, which is known as a facultative
application. The Authority must also apply
for administrative fines, known as a
mandatory application, in the event of a
violation of a standstill period or a suspen-
sion. This is the case also when a court,
following an appeal of the validity of an
agreement, has issued a declaration that the
contract rightfully ought to have been
declared null and void, but was nonetheless
allowed to remain in effect due to over- riding reasons relating to the public interest.
During the year, we filed 15 summons
applications seeking administrative fines on
our own accord, as well as five applications
for mandatory administrative fines with the
Administrative Court.
50 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Supervision decision:A question of whether a foundation was a body governed by public lawAfter the Foundation for Strategic Research
had signed a contract for event services
without engaging in the public procure-
ment of said services, the Swedish Competi-
tion Authority launched an investigation.
The matter being determined was primarily
whether the foundation was a body
governed by public law and must thus
comply with the Public Procurement Act
when awarding contracts for goods,
services and construction contracts. The
Swedish Competition Authority concluded
that this was the case and that the founda-
tion had thus violated the regulatory frame-
work governing procurement by awarding
the contract without publishing a contract
notice. [Ref. no.: 456/2012]
Supervision decision:A question of exemption from publication of a contract notice under the Public Procurement ActThe Swedish Competition Authority
investigated whether an exemption clause
in the first paragraph in chapter 4, article 5
of the Public Procurement Act can be used
as grounds for an informal procedure when
a reopening of competition failed to result in
any bids. In 2013, the Jönköping University
Foundation entered into a contract for the
leasing of company cars. This was done
without first publishing a contract notice on
the grounds that it had not received any
responses to a call-off request under its
Swedish National Procurement Agreement.
In its decision, the Swedish Competition
Authority concluded that the difference
between a reopening of competition and
the publication of a contract notice, which
the clause pertains to, is significant. In the
first case, requests for tender are exclusively
sent to a limited group of suppliers,
whereas in the latter case, a request is sent
to the entire market. The aforementioned
contract should have been procured in
accordance with the stipulations of the
Public Procurement Act, thus rendering the
current contract an illegal direct award of
contract. The legal question that the case
highlights is topical and of practical
significance. [Ref. no.: 179/2014]
Active investigation:Älmhult Municipality’s pro- curement of a partner for the purchase of unprepared meatThe Swedish Competition Authority is
investigating whether Älmhult Municipality,
which, without any prior publication of a
contract notice, contracted a supplier
which, in partnership with the Municipality,
is charged with managing the purchasing,
butchering, packaging and distribution of
meat. The structure shares certain similari-
ties with the construction industry’s model
for what is termed “partnering”. The
question is whether the structure is in viola-
tion of the Public Procurement Act. This
case can be compared to Stockholm Public
Transport’s procurement of consultants;
reference number 155/2013.
[Ref. no.: 692/2014]
Dismissal and transfer to the Support Department:Staffing servicesThe case pertained to the Norrbotten
County Council’s framework agreement for
staffing services for doctors and nurses.
From 2012 onward, the County Council has
largely enlisted suppliers that are not
encompassed by the current framework
agreement. In the course of the Swedish
Examples of procurement supervision cases Presented below is a selection of the supervision cases the Swedish Competition Authority has investigated during the year.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 51
Competition Authority’s investigation, the
Council had difficulty accounting for how
its suppliers had been selected. The County
Council cited an occasional failure on the
part of the suppliers to deliver on the
services that had been contracted, and that
the problem was prevalent nationwide. The
Swedish Competition Authority acknowled-
ged the presence of larger structural issues
related to the procurement of staffing
services for healthcare personnel. Follow-
ing discussions between the Enforcement
Department and the Support Department,
the Swedish Competition Authority decided
that the matter should be investigated from
a support perspective.
[Ref. no.: 155/2014, 572/2014]
Application seeking administrative fine:Herrljunga Municipality – totalling up of direct award of contracts during the fiscal yearThrough an article in a local paper, the
Swedish Competition Authority learned that
between 2011 and 2013, Herrljunga
Municipality had enlisted consultants
through a staffing company without
opening the services to competition by
publishing a contract notice. Accordingly,
the Swedish Competition Authority elected
to investigate the matter. The investigation
resulted in an application seeking adminis-
trative fines being filed with the Adminis-
trative Court in Jönköping on 22 May 2014.
The application petitioned for Herrljunga
Municipality to pay fines of SEK 65,000 due
to the illegal direct award of contracts.
In its application, the Swedish Competi-
tion Authority calculated the value of the
illegal direct award of contracts to include
the value of all of the performed an illegal
direct award of contract for consulting
services that had been rendered during the
2013 fiscal year. Since the application was
filed in May 2014, the Swedish Competition
Authority’s calculation also included the
value of contracts that, at the time the
application was filed, were more than one year old, despite an action for administrative
fines pertaining to these contracts being
prescribed. This marks the first occasion in
which the Swedish Competition Authority
has calculated the value of an illegal direct
award of contract in this manner in an
action seeking administrative fines.
The Swedish Competition Authority thus
sought the Court’s opinion in a bid to gain
clarity in the matter.
In a judgment issued 7 January 2015, the
Administrative Court in Jönköping ruled in
favour of the Swedish Competition Authority
and ordered Herrljunga Municipality to pay
administrative fines of SEK 65,000.
[Ref. no.: 364/2014]
Application seeking administrative fine:Malmö Municipality – aggravating circumstancesIn 2011, Malmö Municipality conducted a
public procurement process for a frame-
work agreement pertaining to the leasing of
machinery and other equipment for
construction work. According to the terms
conveyed to bidders in the procurement,
the framework agreement would be valid
for two years. There was no option for an
extension of the framework agreement.
Despite this, in June 2013, the Municipality
extended the framework agreement for
another two years. Since this constitutes an
illegal direct award of contract in the view
of the Swedish Competition Authority, the
Authority filed an application seeking SEK
325,000 in administrative fines from Malmö
Municipality. [Ref. no.: 135/2014]
52 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Malmö Municipality had previously – in
July 2012 – been convicted by the Adminis-
trative Court in Malmö of illegal direct award
of contracts for snow removal services, for
which it was ordered to pay an administra-
tive fine. In its current application, the
Swedish Competition Authority contended
that the Municipality’s repeated behaviour
constitutes aggravating circumstances, thus
warranting an order to pay a higher fine
than under normal circumstances.
The Administrative Court in Malmö sided
with the Swedish Competition Authority
and ruled fully in favour of the application
in a judgment issued in July 2014. The
Municipality filed an appeal with the
Gothenburg Court of Appeal which, in a
judgment dated 20 November 2014, sided
with the Swedish Competition Authority on
all counts in the case. The Court of Appeal
also found the Municipality’s repeated illegal direct award of contracts to constitute
aggravating circumstances, thus warranting
an order to pay SEK 325,000 in administra-
tive fines.
Decision to dismiss case:The Swedish Defence Materiel Administration’s purchase of trucksFollowing authorisation by the government,
the Swedish Defence Materiel Administra-
tion (FMV) entered into a cooperation
agreement with the Norwegian Defence
Logistics Organisation (FLO), a Norwegian
government agency, with the aim of
conducting a joint procurement process
under which they would purchase trucks
for the agencies. FLO was tasked with
conducting the procurement process in
accordance with Norwegian law.
After becoming aware of the impending
transaction, the Swedish Competition
Authority launched an investigation that
focused on whether there were any
precedents to conducting a cross-border
agreement such as the one that was entered
into between FMV and FLO.
After completing its investigation, the
Swedish Competition Authority concluded
that there are no stipulations in the
procurement legislation and the EU
directives concerning procurement that
prevent a partnership between authorities
in separate EU/EEA member states. The
Swedish Competition Authority concluded that, pursuant to the transparency principle,
such partnerships should be required to
make clear to all parties which of the
participating country’s legislation will be
applied. The agreement between FMV and
FLO stated that Norwegian law applied in
terms of procedural rules and legal re-
medies. Accordingly, the Swedish Competi-
tion Authority decided that there was no
reason to pursue the matter further and
that the matter would be closed.
[Ref. no.: 761/2013]
Active investigation:Charting of construction collaborationsFollowing an application from the Swedish
Competition Authority, the Stockholm Admi-
nistrative Court ruled on 3 April 2014 that
the municipally owned company Haninge
Bostäder AB would be ordered to pay an
administrative fine. Forming the grounds
for the judgment was the fact that the
company had performed an illegal direct
award of contract by purchasing a limited
liability company whose only asset was a
construction contract. According to the
Court, which conducted a full review of the
circumstances surrounding the company’s
actions, the purchase of the limited liability
company constituted an intentional
circumvention of the procurement legisla-
tion since, for all intents and purposes, the
point of the purchase was to obtain a
construction contract that was subject to
procurement. The Administrative Court’s
judgment has been appealed and has not
yet gained legal effect.
As a result of the judgment and informa-
tion that has come to the Swedish Competi-
tion Authority’s attention, a number of
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 53
As a result of the judgment and information that has come to the Swedish Competition Authority’s attention, a number of enforcement cases have been launched with the aim of both reviewing whether the specific circum-stances in these cases constitute the illegal direct award of contracts, and of investigating the procurement law aspects and questions concerning collaborations between a municipality or municipally owned company and private organisations in carrying out a construction contract.
54 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
enforcement cases have been launched
with the aim of both reviewing whether the
specific circumstances in these cases con-
stitute the illegal direct award of contracts,
and of investigating the procurement law
aspects and questions concerning collabo-
rations between a municipality or munici-
pally owned company and private organisa-
tions in carrying out a construction
contract. [Ref. no.: 573/2014, 405/2014,
403/2014 and 538/2013]
Supervisory project:Framework agreements and the waste sectorDuring the year, the Swedish Competition
Authority worked on two enforcement
projects in the field of procurement: one
was on framework agreements and one
pertained to the waste sector.
The framework agreement project aims
to disseminate information on the applica-
tion of framework agreements in order to
act as a general deterrent and thus yield
greater compliance with the rules. The
project has reviewed a number of procure-
ment processes and call-off orders from
framework agreements that will result in
separate decisions, as well as a report
drafted on the basis of the legal issues that
are the subject of the enforcement.
[Ref. no.: 699/2013]
The waste project aims to review the
procurement of services in the waste
market, building on past reviews by the
Swedish Competition Authority to assess
the current state of affairs. Over the course
of the project, certain companies and
contracting authorities have been selected
and reviewed in greater detail. These cases
will culminate in individual decisions in the
interest of gaining clarity surrounding the
problems at hand. [Ref. no.: 632/2014]
Official notices to the government with proposals for regulatory amendmentsThe current legislation governing manda-
tory applications for administrative fines
require the Swedish Competition Authority
to bring legal action seeking administrative
fines even in the cases in which the
Authority does not believe that a fine will
be imposed. This is not satisfactory since it
creates an unnecessary workload for the
courts, contracting authorities and the
Swedish Competition Authority.
This official notice resulted from the
Supreme Administrative Court ruling
against the Swedish Competition Authority
on 30 June 2014 in a series of judgments for
five municipalities in the province of
Värmland. In its ruling, the Court cited that
the value of the sanctions was so low that it
constituted a trivial case and that it was
therefore unable to rule in favour of an
administrative fine.
The Court’s decision creates new
guidance for when an administrative fine
does not have to be paid on the grounds of
the case being trivial. On 1 October, the
Swedish Competition Authority filed an
application seeking an administrative fine
against Åsele Municipality pursuant to the
same legal provision in the Public Procure-
ment Act. In light of the Supreme Adminis-
trative Court’s judgment during the summer, the Swedish Competition Authority
has determined that its current application
is a trivial case, meaning that no adminis-
trative fine is to be paid. Despite this fact,
under the current rules, the Swedish
Competition Authority must nonetheless
bring an action against the municipality.
The Swedish Competition Authority
believes that this legislation must be re-
viewed and amended. Accordingly, the
Swedish Competition Authority has turned
to the government in this matter.
[Ref. no.: 601/2014 and 369/2014]
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 55
Proposals for a more effective public procurement processThe Swedish Competition Authority has
submitted proposals suggesting improve-
ment measures in instances where legisla-
tion hampers an effective public procure-
ment process. These proposals have taken
the shape of official notices to the govern-
ment and responses to consultations,
including views on reports concerning new
procurement rules. (Ds 2014:25 and SOU
2014:51).
In the latter consultation response, the
Swedish Competition Authority contends
that greater flexibility must be given to
contracting authorities, and more opportu-
nities for what are termed socially respon-
sible companies and non-profit organisa-
tions to submit bids in procurement
rounds. [Ref. no.: 510/2014]
In its consultation response, the Swedish
Competition Authority also emphasises that
public procurement processes offer the
ability to impose strict requirements that go
beyond the EU-harmonised legislation.
However, the ability to take environmental
considerations, social considerations and
labour laws into account has not changed
in any material respect under the new
directives. As contracting authorities in
various member states impose new and
more requirements on environmental
considerations and social considerations,
the ability to observe environmental
considerations and social considerations
will be clarified through the development
of best practices and precedents from the
Court of Justice of the European Union. This
should ultimately lead to smaller contrac-
ting authorities also taking the chance to
impose such requirements in their procure-
ment processes, which the Swedish Compe-
tition Authority regards as positive.
The Swedish Competition Authority monitors legal developmentsThe Swedish Competition Authority is
tasked with monitoring and reporting on
developments in the field of public procure-
ment, both nationally and internationally.
Our database of court decisions encompas-
ses judgments from administrative courts,
appellate courts and the Supreme Adminis-
trative Court. Since 2010, it has been
mandatory for these courts to submit all
judgments and final decisions in procure-
ment cases to the Swedish Competition
Authority for publication. The database also
includes judgments issued by the Court of
Justice of the European Union.
As contracting authorities in various member states impose new and more requirements on environmental considerations and social considerations, the ability to observe environmental considerations and social considera-tions will be clarified through the development of best practices and pre-cedents from the Court of Justice of the European Union.
Applications seeking administrative fines in 2014
Applications seeking administrative fines – own initiativeThe following is a list of all of the applications seeking administrative fines that the Swedish Competition Authority submitted to the Administrative Court on its own initiative in 2014.
Authority Administrative Reason fine requested
Eskilstuna MunicipalityRef. no.: 64/2014 SEK 225,000 Direct award of contract for event organising services at a value of SEK 3 million.
Kronoberg County CouncilRef. no.: 65/2014 SEK 200,000 Direct award of consulting services at a value of SEK 2.7 million.
Herrljunga MunicipalityRef. no.: 364/2014 SEK 65,000 Direct award of staffing services at a value of SEK 1.6 million.
Malmö MunicipalityRef. no.: 420/2014 SEK 325,000 Direct award of lease and building and construction products at a value of SEK 3.6 million.
Akademiska Hus ABRef. no.: 473/2014, 474/2014, SEK 950,000 Direct award of services 475/2014, 476/2014, and construction contracts 477/2014, 478/2014 at a value of SEK 12 million.
Mullsjö MunicipalityRef. no.: 751/2014 SEK 200,000 Direct award of cleaning services at a value of SEK 3 million.
Stockholm County Council Ref. no.: 816/2014 SEK 500,000 Direct award of plastic surgery services at a value of SEK 5.8 million.
Municipal Purchasing Association Gävleborg Ref. no.: 833/2014 SEK 170,000 Direct award of printing services at a value of approx. SEK 2.3 million.
Stockholm County CouncilRef. no.: 852/2014 SEK 350,000 Direct award of specialist care for patients with lymphedema at a value of about SEK 4 million.
Bergs Tingslags Elektriska ABRef. no.: 853/2014 SEK 550,000 Direct award of contracting services at a value of about SEK 7.3 million.
56 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Applications seeking administrative fines in 2014
Applications seeking administrative fines – mandatoryThe following is a list of all of the mandatory applications seeking administrative fines that the Swedish Competition Authority submitted to the administrative court in 2014.
Authority Administrative Reason fine requested
GOVERNMENT AGENCIES Chalmers University of TechnologyRef. no.: 217/2014 SEK 28,000 The contract was allowed to remain in effect despite being reached in violation of the regulations governing standstill.
MUNICIPALITY/MUNICIPAL COMPANIES Lund MunicipalityRef. no.: 709/2013 SEK 250,000 The contract was allowed to remain in effect due to overriding reasons relating to the public interest.
Nyköping MunicipalityRef. no.: 173/2014 SEK 80,000 The contract was allowed to remain in effect despite being reached in violation of the regulations governing standstill.
Solatum Hus & Hem ABRef. no.: 457/2014 SEK 85,000 The contract was allowed to remain in effect due to overriding reasons relating to the public interest.
Åsele MunicipalityRef. no.: 601/2014 - The contract was allowed to remain in effect due to overriding reasons relating to the public interest.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 57
Court decisions and judgments in 2014 – administrative fines
The Swedish Administrative Supreme Admini-Competition Authority Administrative Court Court of Appeals strative Court
SJ AB 23/01/2013 10/01/2014 Being reviewed by the Ref. no.: 58/2013, 57/2013 (Stockholm Administrative CourtAmount requested: 1959-13, 1960-13) (Stockholm 603-14, 604-14)SEK 8,500,000 The application was denied since the Administrative Court found that the Utilities Procurement Act was not applicable to SJ AB’s purchases of construction contracts, goods and services. Växjö Municipality 29/08/2013 11/03/2014 Ref. no.: 487/2013 (Växjö 3385-13) Amount requested: The Swedish Competition SEK 52,000 Authority’s request was granted.
Växjö Municipality 29/08/2013 11/03/2014 Ref. no.: 488/2013 (Växjö 3386-13) Amount requested: The Swedish Competition SEK 81,000 Authority’s request was granted.
Växjö Municipality 29/08/2013 11/03/2014 Ref. no.: 489/2013 (Växjö 3387-13) Amount requested: The Swedish Competition SEK 45,000 Authority’s claim was granted.
Växjö Municipality 29/08/2013 11/03/2014 Ref. no.: 490/2013 (Växjö 3388-13) Amount requested: The Swedish Competition SEK 101,000 Authority’s claim was granted.
Växjö Municipality 29/08/2013 11/03/2014 Ref. no.: 491/2013 (Växjö 3389-13) Amount requested: The Swedish Competition SEK 46,000 Authority’s request was granted.
Haninge Bostäder AB 12/10/2012 03/04/2014 Being reviewed by the Ref. no.: 461/2013 (Stockholm 20749-13) Administrative Court Amount requested: The Swedish Competition (Stockholm 2737-14)SEK 10,000,000 Authority’s request was granted. Eskilstuna Municipality 27/01/2014 23/04/2014 Ref. no.: 64/2014 (Linköping 589-14) Amount requested: The Swedish Competition SEK 225,000 Authority’s request was granted.
Chalmers University of Technology AB 23/03/2014 24/04/2014 Ref. no.: 217/2014 (Gothenburg 3749-14) Amount requested: The Swedish Competition SEK 28,000 Authority’s request was granted.
Nyköpings Municipality 05/03/2014 06/05/2014 20/08/2014 29/09/2014Ref. no.: 173/2014 (Linköping 1505-14) (Jönköping 1686-14) (4860-14)Amount requested: The Swedish Competition Leave to appeal Leave to appeal SEK 80,000 Authority’s request was denied; previous denied; previous granted. decision upheld. decision upheld.
58 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
The Swedish Administrative Supreme Admini-Competition Authority Administrative Court Court of Appeals strative Court
Region Gotland 06/08/2013 15/05/2014 19/09/2014 Ref. no.: 462/2013 (Stockholm 21274-13) (Stockholm 4062-14) Amount requested: The Swedish Competition Leave to appeal SEK 250,000 Authority’s request was denied; previous granted. decision upheld.
Akademiska Hus AB 11/09/2012 10/06/2014 23/01/2015Ref. no.: 476/2012 (Umeå 1643-12) (Sundsvall 1767-14) Amount requested: The Swedish Competition The Swedish Competition SEK 3,000,000 Authority’s request was Authority’s request was granted. granted.
Stockholm County Council 18/12/2013 27/06/2014 25/09/2014 Ref. no.: 765/2013 (Stockholm 30512-13) (Stockholm 5322-14) Amount requested: The Swedish Competition Leave to appeal SEK 3,000,000 Authority’s request was denied; previous granted. decision upheld. Malmö Municipality 12/06/2014 09/07/2014 20/11/2014 Ref. no.: 420/2014 (Malmö 5830-14) (Gothenburg 4402-14) Amount requested: The Swedish Competition Leave to appeal SEK 325,000 Authority’s request was denied; previous granted. decision upheld.
Statens Servicecenter (Swedish National Service Centre) 23/05/2013 28/07/2014 Being reviewed by Ref. no.: 331/2013, (Falun 2191-13, 2192-13) the Administrative Court 330/2013 Rejected the Swedish (Sundsvall 2109-14. 2110-14)Amount requested: Competition Authority’s SEK 1,450,000 application and granted its claim in part.
Åsele Municipality 10/09/2014 06/10/2014 Ref. no.: 601/2014 (Umeå 1617-14) Amount requested: Application rejected.SEK 0
Swedish Civil Contingencies Agency (MSB) 06/12/2013 17/07/2013 02/12/2014 Awaiting hearing on Ref. no.: 688/2012 (Karlstad 5156-12) (Gothenburg 4915-13) leave to appeal to Amount requested: The Swedish Competition Appeal rejected. the Supreme SEK 1,100,000 Authority’s claim was Previous decision Administrative Court granted. upheld. (HFD 6888-14)
Falu Municipality 01/12/2011 13/02/2013 09/10/2013 30/10/2014Ref. no.: 739/2011 (Falun 5096-11) (Sundsvall 672-13) (7021-13) Amount requested: Granted part of the Granted part of the Granted part of the SEK 10,000,000 Swedish Competition Swedish Competition Swedish Competition Authority’s request. Authority’s request. Authority’s request. Amount: SEK 7,000,000 Amount: SEK 8,000,000 Amount: SEK 8,000,000 Lund Municipality 23/10/2014 24/03/2014 18/12/2014 Awaiting hearing on Ref. no.: 709/2013 (Malmö 758-14) (Gothenburg 2055-14) leave to appeal to Amount requested: The Swedish Competition The Swedish the Supreme SEK 250,000 Authority’s request was Competition Authority’s Administrative Court granted. request was granted. (HFD 6888-14)
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 59
60 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Opinions given to courtsDuring the year, the Swedish Competition
Authority submitted four opinions to courts
that requested views on various cases.
» The Härnösand Administrative Court
requested the Swedish Competition
Authority’s opinion on fundamental
questions of law concerning the telecom
exemption in the Public Procurement
Act. In the Swedish Competition Authori-
ty’s opinion, the telecom exemption is
not applicable if an authority engaging in
a procurement instead opts to enlist a
private company to provide such
services or to operate the network. In
such a case, the authority is no longer
conducting any operations that are
covered by the telecom exemption.
The opinion also highlights the
stipulations that apply when a contrac-
ting authority enters into an agreement
with a supplier in which certain ele-
ments of the agreement are subject to
procurement obligations while others lie
beyond the Public Procurement Act,
which are termed mixed contracts.
[Ref. no.: 348/2014]
» In an opinion given to the Jönköping
Court of Appeal, the Swedish Competi-
tion Authority contended that the rules
in chapter 5 of the Public Procurement
Act are applicable in procurement
processes that primarily pertain to an
authority’s inclusion in a framework
agreement, but emphasised that this
assessment is to be made on the basis of
the practice that is depicted in the
opinion. [Ref. no.: 9/2014]
» In conjunction with Systembolaget’s
purchase of media services, a dissatisfied
supplier turned to the Stockholm
Administrative Court to have the case
heard. The Court asked the Swedish
Competition Authority to provide its
expert opinion in the matter of whether
Systembolaget (the state alcohol mono-
poly) was covered by the term “body
governed by public law”, in chapter 2
article 12 of the Public Procurement Act.
The Swedish Competition Authority
conducted a thorough investigation of
the criteria under the Public Procure-
ment Act and analysed the legal position,
and determined that Systembolaget is a
body governed by public law that is
covered by the Public Procurement Act
[Ref. no.: 306/2014]
Stakeholders’ opinion on our supervision of public procurementOur Appropriation Directions for 2014
stipulate that we are to report and com-
ment on the views of our stakeholders
regarding our supervision of public
procurement. For the eighth consecutive
year, the Swedish Competition Authority
conducted a stakeholder survey addressing
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, corporate lawyers and the
group comprising public authorities and
agencies. These findings are used when
prioritising information initiatives and
other activities for the coming year. The
survey was conducted by Institutet för
kvalitetsindikatorer.
EffectsOf all those surveyed, 56 per cent responded
that they believe that the Swedish Competi-
tion Authority is combating serious viola-
tions of the procurement legislation, which
was a slight increase compared with the
preceding year. The share responding that
they disagree is the greatest among trade
associations, at 11 per cent, and SMEs, at 11
per cent.
AttitudesIn terms of views on the procurement rules,
the share that holds a negative view (28 per
cent) is approximately the same as those
who hold a positive view (27 per cent) on
the rules. The positive share was unchanged
or had declined among each group of
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 61
Swedish procurement rules in briefPublic procurement is defined as the purchase of goods, services or construction contracts by a public body, such as a government agency, or a municipal authority or certain public companies. In what is known as the utilities sector, meaning water, energy, trans-port and postal services, certain privately held companies may also be subject to the procurement regulations.
The fundamental principles that must be observed in all public procurements are:» non-discrimination» equal treatment» transparency and predictability» proportionality» mutual recognition.
After a supplier files an application, a general administrative court must determine whether the procurement process must be re-conducted. The court may also decide that a procurement can only be finalised after it has been amended. If, after the completion of a procurement process, a supplier believes that it has suffered damages due to an improperly conducted procurement process, the supplier can seek damages in a general court. An agreement between a contracting authority and a supplier may be declared null and void by a court following an application from a supplier.
Administrative finesSince 15 July 2010, the Swedish Competition Authority has been entitled to take contracting
authorities and departments – including municipalities, county councils and government
agencies – that violate rules governing the illegal direct award of contracts to court and seek
an administrative fine. The Swedish Competition Authority must also apply for administra-
tive fines in the event of in the event of a violation of a standstill period or a suspension.
62 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
stakeholders. On average, 62 per cent agree
with the view that the Swedish Competition
Authority’s decisions and actions taken
serve as a form of guidance for companies
and authorities in procurement matters,
which is an increase of 7 percentage points
compared with 2013. SMEs (53 per cent)
responded that they receive less guidance
than other stakeholder groups.
Confidence In a weighted average of the various
stakeholder groups, 66 per cent responded
that they have a high level of confidence in
the Swedish Competition Authority, which
is an increase of 4 per cent. With the excep-
tion of corporate lawyers and trade associa-
tions, the share responding that they have a
high level of confidence increased across all
stakeholder groups. The share with a high
level of confidence is the greatest among
authorities and agencies (76 per cent), and
lowest among SMEs (55 per cent).
Assessment of the Swedish Competition Authority’s case managementThis year’s survey does not make a distinc-
tion between competition cases and procure-
ment cases since these two groups have
been integrated. Please refer to the findings
and tables on pages 27 and 28 under the
Competition heading.
Information and communicationDuring the year, we conducted a number of
initiatives aimed at disseminating informa-
tion on procurement issues to serve as
support for our target groups and to
improve our digital information channels.
Konkurrensverket.seThe Swedish Competition Authority’s
primary channel for external communica-
tions is our website, konkurrensverket.se,
which was thoroughly revamped during the
autumn of 2014.
The new konkurrensverket.se website
was developed using what is known as
responsive design to better meet our users’
needs. The website now adapts to the user’s
screen size, thus making the Swedish
Competition Authority’s digital communica-
tions highly consistent with the rapid pace
of mobile advancements.
Konkurrensverket.se has also been given a
clearer and more modern visual image.
The purpose of updating the website was
to enhance accessibility for our target
groups, and our new website, which was
launched in mid-December, compiles
information about both enforcement and
support functions in competition and
procurement matters. On our website,
information that was previously housed
with the Swedish Legal, Financial and
Administrative Services Agency’ Procure-
ment support function (upphandlingsstod.
se), the Swedish Environmental Manage-
ment Council (msr.se) and the Swedish
Competition Authority (konkurrensverket.
se), has been consolidated and updated.
The statistics for 2014 show that the website
received nearly 900,000 hits and that the
procurement homepage, the Q&A pages and
the page with career opportunities were
among the most popular. It is also note-
worthy that all pages related to direct
awards of contract are very popular.
Social mediaAll of the website’s communications options
are accompanied by the Swedish Competi-
tion Authority’s presence in social media.
Twitter is a key resource in our external
communications to certain target groups
and is used to communicate news, presen-
tations and career opportunities. Social
media enables us to generate attention and
navigate traffic to the Swedish Competition
Authority’s other communication channels.
In addition to Twitter, we have also
uploaded video clips from our own events,
for example on YouTube. The Swedish
Competition Authority has also begun
developing clearer communications in
motion graphics and initiated an effort to
gain greater exposure in other social media,
such as LinkedIn.
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 63
Almedal WeekDuring this year’s Almedalen Week on the
island of Gotland, the Swedish Competition
Authority organized five seminars. The
overarching theme of the seminars was
procurement for welfare. The seminars,
which were held on 3 July, were also
broadcast live via our website, konkurrens-
verket.se, and enjoyed a high attendance.
The five seminars were seen by a total of
1,255 individuals, either live on site or via
the webcasts.
» Creating world-class purchasing
organisations
» Vision meets reality when purchasing
food
» Nontoxic preschools – utopia or potential
reality?
» Crafting new Swedish procurement laws
» Purchasing welfare services – turning
taxpayers’ money into welfare
Electronic newsletterAs of August, the Swedish Competition
Authority issues a consolidated newsletter
on both procurement and competition
matters. The newsletter addresses both
support and supervisory matters and is
issued every other week. It replaces the
newsletter that was previously published
once a month. Our newsletter provides
more than 3,000 subscribers with up-to-date
information.
Information meetingsDuring the year, the Swedish Competition
Authority’s employees have held speeches
and presentations in more than 170 different
external settings, aimed at providing infor-
mation on legislation and on our supervisory
and support functions. Since the procure-
ment support functions were fully consoli-
dated with the Swedish Competition
Authority on 1 July, our employees have
held presentations on procurement matters
on about 70 occasions, 28 of which dealt
specifically with sustainability matters.
During the autumn of 2014, the Swedish
Competition Authority also launched a
series of breakfast seminars that were also
broadcast live on our website. They allowed
viewers to ask questions, and a total of just
over 250 individuals participated in these
seminars.
The breakfast seminars addressed such
topics as the direct award of contracts,
environmental and social considerations,
new procurement legislation, the procure-
ment of health and medical care, as well
as the options available for early discus-
sions between suppliers and contracting
authorities.
Opinion pieces and presentationsThe Swedish Competition Authority is an
active participant in the public debate on
procurement. Our employees have held
presentations for both decision-makers and
buyers for the government, municipalities
and county councils. Opinion pieces and
presentations are published on our website.
Stakeholders’ knowledge of the Public Procurement ActOur Appropriation Directions for 2014
stipulate that we are to report and com-
ment on our stakeholders’ knowledge of the
regulatory framework, including the Public
Procurement Act. For this year’s survey, we
turned to large companies (200 employees
or more), SMEs (less than 200 employees),
trade associations, municipal authorities
and county councils, corporate lawyers and
the group ‘public authorities and agencies’.
For the eighth consecutive year, we
measured awareness of the Public Procure-
ment Act. These findings are used when
prioritising information initiatives and
other activities for the coming year. The
survey was conducted by Institutet för
kvalitetsindikatorer.
64 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT PUBLIC PROCUREMENT
Awareness An overwhelming majority – 95
per cent on average – of all groups said that
they were aware of the Public Procurement
Act. The share who responded that they
are aware of or have heard of the procure-
ment rules increased across all stakeholder
groups. As in the preceding year, just under
one-third of respondents indicated that the
Swedish Competition Authority is respon-
sible for the enforcement of the Act. Aware-
ness that the Swedish Competition Autho-
rity is responsible for this enforcement
varied sharply among the different stake-
holder groups. Only one in ten small-busi-
ness owners was aware that the Swedish
Competition Authority is responsible, while
a clear majority of corporate lawyers (68
per cent) named the correct authority.
Attitudes With the exception of munici-
palities and county councils (85 per cent),
awareness of a system of choice in the
procurement of health and medical care
was low, and the share of those aware of
the Act varied sharply among the different
stakeholder groups. However, awareness
increased across all target groups with the
exception of small companies, and based on
the responses, 38 per cent are aware of the
Act on System of Choice in the Public Sector,
which constitutes an increase of 7 per-
centage points.
Just over half of the respondents indica-
ted that they have a positive view of the Act.
Knowledge A substantial majority of
respondents in all stakeholder groups
– 94 per cent overall (89 per cent in 2013) –
know that an authority can be fined for the
illegal direct award of a contract. An equal
share, 94 per cent, knew that contracts
awarded illegally can be declared null and
void (91 per cent in 2013). The percentage
responding correctly to the questions
regarding knowledge of the procurement
rules was up on average compared with the
preceding year.
Council on Procurement MattersThe Council on Procurement Matters serves
as a valuable form of assistance in the
Swedish Competition Authority’s public
procurement efforts. The Council acts as a
forum for sharing experiences both on
public procurement matters and on the
need for measures to promote the develop-
ment of an effective public procurement
process. The Council’s members are
appointed by the Swedish Competition
Authority. Examples of topical matters
discussed by the Council during the year
include:
» Direct awards of contract–raised
threshold on the direct award of con-
tracts, guidelines and duty to maintain
documentation
» terms similar to collective agreements,
what degree of flexibility is available to
impose requirements consistent with the
terms stipulated in Swedish collective
agreements?
» reopening of competition without
tenders, the options for direct awards of
contract
» new procurement rules and a review of
the responses to official consultations
pertaining to these rules
» unfair strategic bidding
» dialogue ahead of, during and after
procurement
» criteria activities of the Swedish
Competition Authority
Improvement measures and reportsIn our reports, we analyse how different
markets work and submit proposals for
improvements.
Responses to official consulta-tions on procurementBy commenting on proposals contained in
reports and other inquiries we can partici-
pate in and influence the preparation and
drafting of proposals and decisions at an
early stage.
In 2014, among the Swedish Competition
Authority’s most important responses to
PUBLIC PROCUREMENT SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 65
Members of the Council on Procurement mattersDan Sjöblom, Director General, Council Chairman, Swedish Competition Authority
Mats Bergman, Professor of Economics, Södertörn University
Fredrik Rogö, Procurement Lawyer, Upphandlingsbolaget i Göteborgs stad
Nina Widmark, Analyst, Vinnova
Ulrica Dyrke, Expert, Swedish Federation of Business Owners
Ted Stalte, Procurement Strategist, City of Stockholm
Johanna Falk, Head of Procurement, Atea AB
Charlotta Lindmark, Chief Counsel, Swedish Transport Administration
Karin Peedu, Head of Procurement, Stockholm County Council
Andrea Sundstrand, PhD in Public Law, Stockholm University
Viveca Reimers, Environmental Manager, VGR
Eva-Lotta Löwstedt Lundell, Managing Director, Sveriges Radios Förvaltning AB and Chair
of the Swedish Association of Public Purchasers
Therese Hellman, Draftsperson, Secretary of the Council, Swedish Competition Authority
official consultations in the field of procure-
ment included statements on the proposal
for the implementation of new procure-
ment directives that have been adopted at
the EU level. (Ref. no.: 510 and 673/2014).
The Swedish Competition Authority also
commented on the proposal for amend-
ments to the Health and Medical Services
Act regarding the right to choose a primary
care provider (Ref. no.: 667/2014) and
opposed a proposal for the design of the
future system of choice in the area of social
services. (Ref. no.: 106/2014).
The Swedish Competition Authority
largely backed the proposal for stronger
protection for employees who call attention
to serious improprieties. (Ref. no.: 490/2014).
Facts and figures on public procurement.
Statistics on procurement processes
completed in 2013 New developments in
this year’s report include a new calculation
of the value of purchases subject to man-
datory procurement notice, which amount
to approximately SEK 600 billion annually,
a study of bidders and winners at the con-
tract level, as well as statistics on leaves to
appeal that were granted and withdrawals
from procurement processes. The report
is based on statistics gathered from such
sources as Visma Commerce AB, Statistics
Sweden and the Swedish National Courts
Administration. (Report series 2014:1)
CollaborationsThe Swedish Competition Authority’s tasks
include striving to maintain effective
collaborations with authorities and other
relevant actors. We must also consult with
the authorities that are impacted by the
Swedish Competition Authority’s proposals
for improvement measures.
The Swedish Competition Authority is in
regular contact with other authorities and
organisations that have been given assign-
ments related to the implementation of the
system of choice in the field of primary
care, among others. These authorities
include the Swedish National Board of
Health and Welfare, the Swedish Agency for
Economic and Regional Growth, the
Swedish Legal, Financial and Administrati-
ve Services Agency, the Swedish Agency for
Public Management, the Swedish Agency
for Health and Care Services Analysis, the
Swedish Agency for Growth Policy Analysis
as well as the Swedish Association of Local
Authorities and Regions. The Swedish
Competition Authority also collaborates
with business organisations and organisa-
tions that represent the non-profit sector.
We have also participated in the Swedish
Chemicals Agency’s industry discussion on
textiles, and held talks with VINNOVA regar-
ding innovation in the public sector.
66 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT RESEARCH
ResearchThe Swedish Competition Authority’s most important task in the field of research is to support research projects. The research is meant to yield greater awareness among the Swedish Competition Authority’s employees and stakeholders.
To share and advance knowledge about current competition-related matters, the Swedish
Competition Authority holds an annual international research seminar under the theme of
“Pros and Cons”. Read more about our research on the following pages.
RESEARCH SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 67
68 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT RESEARCH
Research The Swedish Competition Authority has a
special government appropriation that is
earmarked for contributions to research in
the fields of competition and procurement.
In 2014, that appropriation totalled nearly
SEK 14 million.
The research is meant to yield greater
awareness among the Swedish Competition
Authority’s employees and stakeholders.
First and foremost, we finance research in
the legal and economic fields. We also
organise conferences, seminars and work-
shops during which we provide informa-
tion on our research and its findings. The
Swedish Competition Authority also holds
an annual essay contest for students.
Projects that received funding in 2014The Swedish Competition Authority’s most
important task in the field of research is to
support research projects. During the year,
we received 38 applications requesting
funding for research in the fields of
competition and procurement. The Swedish
Competition Authority granted funding for
seven new projects in the field of competi-
tion research and two in procurement
research at a total value of nearly SEK 3.4
million. The Swedish Competition Authority
also paid out slightly more than SEK 6.1
million to ten ongoing projects.
Competition researchPresented below are the new research
projects on competition-related matters.
» Lars Henriksson – The significance of
purchasing power in EU competition law.
» Lars Persson - Swedish Part of the
European Cartel Project: “What Do Legal
Cartels Tell Us about Illegal Ones?”
» Magnus Söderberg - Measuring the effect
of cartels on price.
» Mats Bergman - Competitive Neutrality
in Mixed Markets.
» Erik Lakomaa - Market deregulation as a
discovery process: A comparative study
of monopolist behaviour in deregulatory
processes in Sweden and Finland.
Research on public procurementPresented below are the new research
projects on procurement-related matters.
» Johan Nyström – Imbalanced bidding in
the engineering industry; a cause of
insufficient cost-efficiency?
» Jan-Eric Nilsson – Cost-efficiency in
tendered contracts.
Commissioned researchThe Swedish Competition Authority also
commissions research projects when we
detect a direct need to investigate or
highlight certain aspects in the fields of
competition and procurement. The findings
are published in a special report series on
commissioned research. For each project,
we assign a reference group with the task of
assuring the quality of the study. The
reference groups consist of individuals with
special expertise in the relevant field. Our
ambition is for the reports to be founded on
solid academic grounds and to be written in
a way so that the content can also be under-
stood by non-specialists.
A total of SEK 4 million was awarded to
commissioned research in the fields of
competition and procurement.
RESEARCH SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 69
Commissioned research reports on competitionThe Swedish Competition Authority
published the following commissioned
research reports in 2014:
» Hans Lind – “Competition in the estate
agency market: How does it work and
what improvement measures could be
warranted?”
» Karl Lundvall – “New markets and
gender equality: Does increased competi-
tion lead to increased gender equality at
the workplace?”
» Fredrik Heyman, Pehr-Johan Norbäck &
Lars Persson – “Competition and
discrimination in the production market:
Theory and empirical evidence”
» Carl-Johan Petri & Nils-Göran Olve
– “Cost information from a competition
law perspective: Collection, monitoring
and analysis – proposal for a tentative
framework”
» Magnus Söderberg – “The role of
personality traits on price cartel
characteristics”
» Mattias Ganslandt & Gunilla Rönnholm
– “Analysis of the effects of competition
on the retail market for fuel in Sweden”
Commissioned research reports on procurementThe Swedish Competition Authority
published the following commissioned
research reports in 2014:
» Charles Edquist – “Public procurement
and innovation: Obstacles and how to
overcome them”
» Per-Erik Eriksson & John Hane – “Procu-
rement of construction contracts: How
can contractors promote efficiency and
innovation by applying suitable procure-
ment strategies?”
» Tobias Indén, Hanna Lindström &
Sofia Lundberg – “Appealing public
procurement awards: An interview study
on the differences between the Public
Procurement Act and the Utilities
Procurement Act”
Conferences, the Pros and Cons series and workshopsOn 6-7 November, the Swedish Competition
Authority and the procurement law journal
Upphandlingsrättslig Tidskrift organised a
two-day research conference on public
procurement. The aim of the conference
was to enable researchers who currently
work in the field of procurement to forge
ties and thus create a forum for exchanging
research findings.
To share and advance knowledge about
current competition-related matters, the
Swedish Competition Authority holds an
annual international research seminar
under the theme of “Pros and Cons”. Since
the first seminar in 2002, researchers and
experts have discussed the pros and cons of
compelling questions in the field of compe-
tition. The theme of this year’s seminar,
which was held on 28 November, was “The
Pros and Cons of Antitrust in Two-Sided
Markets”, and focused on competition
policy and two-sided markets. Participating
in the conference were over 100 research-
ers, academics, lawyers and representatives
of competition authorities.
On 27 November, the Swedish Workshop
in Competition Research (SWCR) was held.
It is an annual workshop organised by the
Swedish Competition Authority’s Research
Council. The SWCR is held in conjunction
with the Pros and Cons conference and
focuses on competition and procurement-
related matters.
70 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT RESEARCH
RESEARCH SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 71
Working PaperIn the Working Paper series, the Swedish
Competition Authority presents ongoing
research related to the field of competition
policy. The papers are published in English
and serve to share research and methodo-
logy that may be of interest to authorities,
researchers and other stakeholders, in
Sweden and internationally.
In 2014, the Swedish Competition
Authority published the following papers:
» Maria Bigoni, Sven-Olof Fridolfsson,
Chloé Le Coq, and Giancarlo Spagnolo –
“Trust, Leniency and Deterrence”
» Catarina Marvao – “Heterogeneous
Penalties and Private Information”
Essay contestIn an effort to increase interest in competi-
tion and procurement matters among
students, the Swedish Competition Authority
holds an annual essay contest. The contest
is open for all topics that are relevant to the
Swedish Competition Authority’s activities
and the annual submission deadline is 15
September. Some 16 essays were submitted
in the contest of which six were awarded
prizes and shared a total of SEK 100,000.
Four of the essays pertained to public
procurement and two to competition.
Council for Research IssuesThe Council for Research Issues is tasked
with stimulating research in the fields of
competition and procurement, and provid-
ing the Swedish Competition Authority with
findings from developments, primarily in
the economic and legal sciences, which may
be of significance to our activities. The
Council’s members are appointed by the
Swedish Competition Authority and have a
term of two years. This year, the Council
convened three times. Its agenda includes
research issues at large, applications for
research grants, proposals for commissio-
ned research projects and the essay contest.
Members of the Council for Research IssuesDan Sjöblom, Director General, Council Chairman, Swedish Competition Authority
Carl Dalhammar, Assistant Professor, Lund University
Caroline Heide-Jørgensen, Law Professor, University of Copenhagen
Lars Henriksson, Law Professor, Stockholm School of Economics
Tobias Indén, Senior Lecturer in Law, Umeå University
Sofia Lundberg, Senior Lecturer in Economics, Umeå University
Annik Magerholm Fet, Professor, Norwegian University of Science and Technology, Trondheim
Peter Møllgaard, Professor, Copenhagen Business School
Kristina Nyström, Senior Lecturer in Economics, Royal Institute of Technology, Stockholm
Katarina Olsson, Law Professor, Lund University
Magnus Söderberg, Assistant Professor of Economics at CERNA, Mines ParisTech
Joakim Wallenklint, Research Coordinator and Council Secretary, Swedish Competition Authority
72 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT INTERNATIONAL EFFORTS
International effortsThe Swedish Competition Authority is tasked with contributing to inter-national development in the fields of competition and procurement. We cooperate internationally with other authorities, networks and international organisations.
Read more about our international efforts on the following pages.
INTERNATIONAL EFFORTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 73
74 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT INTERNATIONAL EFFORTS
International effortsThe Swedish Competition Authority is
tasked with contributing to international
development in the fields of competition
and procurement. We cooperate internatio-
nally with other authorities, networks and
international organisations.
EU cooperationWithin the framework of the European
Competition Network (ECN), the Swedish
Competition Authority maintains a close
working relationship with the European
Commission and the competition authori-
ties of the member states in the application
of articles 101 and 102 (anti-competitive
cooperation and abuse of dominant
position), under the Treaty on the Functio-
ning of the European Union (TFEU).
In 2014, the Commission and the
competition authorities of the member
states reported 125 new cases to the
network. In addition, the Swedish Competi-
tion Authority regularly receives informa-
tion on complaints and new cases before
the Commission, as well as the most
important documentation in these cases. In
2014, the Swedish Competition Authority
received information on 28 new cases.
Before the European Commission
announces its decision in a case, the parties
are given the opportunity to present oral
opinions on the drafts of the decision under
what is known as an oral hearing. The
competition authorities of the member
states are consulted on the Commission’s
decisions during meetings of the advisory
committee. The Swedish Competition
Authority participated on 15 such occasions
during the year. In addition, the Swedish
Competition Authority participates in the
advisory committee’s meetings to consult
on certain legislative matters before the
Commission. In 2014, the Swedish
Competition Authority participated on
four occasions.
The national competition authorities are
also obligated to consult the Commission
before reaching decisions under articles
101 and 102 of TFEU. In 2014, the Swedish
Competition Authority consulted with the
Commission on three matters.
Exchange of informationCooperation within the ECN is also conduc-
ted through the exchange of information
between the authorities and within the
framework of working groups focusing on
different matters. During the year, the
Swedish Competition Authority participated
in 26 working group meetings. The ECN
representatives also participated in drafting
recommendations on the investigative and
decision-making processes of the competi-
tion authorities of the member states. The
recommendations also aim to facilitate the
exchange of information and to increase
harmonisation in the application of rules
among the competition authorities in the EU.
The Swedish Competition Authority is tasked with contributing to international development in the fields of competition and procurement. We cooperate internationally with our counterparts, networks and international organisations.
INTERNATIONAL EFFORTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 75
Investigations on behalf of other authoritiesThe Swedish Competition Authority helps
the Commission and its sister authorities in
the EU with on-site investigations and
information gathering among companies in
Sweden. In 2014, the Swedish Competition
Authority conducted one such on-site
investigation and ordered one company to
submit written information.
Cooperation on merger controlThe Swedish Competition Authority has
participated in one hearing and seven
meetings under the Advisory Committee
regarding the Commission’s merger
controls in 2014. In addition, the national
competition authorities have a special
working group that is charged with
promoting greater cooperation on merger
controls. In 2014, the working groups
organised three meetings in which the
Swedish Competition Authority participated.
Advisory Committee on Public ProcurementThe EU law cooperation on procurement
matters is largely conducted within the
framework of the European Commission’s
Advisory Committee under the Directorate-
General for the Internal Market and
Services. Working groups are associated
with the Committee. The Swedish Competi-
tion Authority’s employees have participa-
ted in these efforts in all forums.
The Commission’s Stake- holder Expert Group on Public Procurement – SEGPPThe SEGPP serves as a sounding board on
public procurement for the EU Directorate-
General for the Internal Market and
Services. In conjunction with the drafting
and implementation of new procurement
directives, this group has discussed relevant
legal and practical matters in the field of
public procurement. The Swedish Competi-
tion Authority participated in two meetings
during the year and, among other activities,
held a presentation on green public
procurement.
The EU Green Public Procurement Advisory Group (EU APP AG)The EU GPP AG comprises appointed
representatives from EU member states.
The national experts exchange knowledge
and experiences on how each member state
approaches green public procurement,
policy development, monitoring and the
prioritisation of criteria efforts in the EU.
The Directorate-General for the Environment
organises two meetings a year in Brussels
or in another member state. The Swedish
Competition Authority participated in one
meeting during the year in Ghent, Belgium.
G11 GroupThis working group is closely associated
with the aforementioned EU GPP AG.
Meetings are held in conjunction with the
EU GPP AG. The Swedish Competition
Authority participated in one meeting
during the year in Ghent, Belgium.
Public Procurement NetworkThe Public Procurement Network (PPN) is
an informal network comprising represen-
tatives from European authorities and is
specifically geared toward public procure-
ment. Collaborative efforts within the
network are aimed at strengthening and
improving the application of procurement
regulations and promoting cross-border
public procurement, among other purposes.
The 2014 chairmanship began with Greece
prior to being passed to Italy in July. A
member conference was held in December,
at which the Swedish Competition Authority
held a presentation on corruption and
public procurement.
76 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT INTERNATIONAL EFFORTS
Other informationThe Swedish Competition Authority has also
participated in a working group on ethical
procurement, entitled the European Work-
ing Group on Ethical Public Procurement
(EWEPP), and in the EU-financed Electro-
nics Watch project, which aims to develop
methods and tools to monitor labour terms
and conditions within the framework of
electronic products that were purchased by
way of public procurement.
Statistics on public procurement According to EU procurement directives,
Sweden must annually submit public
procurement statistics to the Commission.
The obligation to compile information in
the field of procurement is also required
under the Agreement on Government
Procurement within the framework of the
WTO. In 2014, the Swedish Competition
Authority tasked Statistics Sweden with
producing this information. The informa-
tion on procurement exceeding the thres-
hold value is based on information obtai-
ned from the EU Tenders Electronic Daily
database. Information that falls below the
threshold values is obtained through
questionnaires given to authorities and
other bodies. [Ref. no.: 38/2014]
Nordic cooperationThe Nordic competition authorities have
enjoyed closed cooperation for many years.
The most recent meeting was held in Copen-
hagen, where we discussed, among other
things, competition issues that arise when
booking hotels online and the state of
competition in the waste market, mainly
when public organisations compete with
private companies. Several working groups
with members from the Nordic countries
have met during the year, including the
Chief Economists group. The Nordic cartel
network includes representatives who work
on cartel investigations at the different
authorities. The chairmanship rotates and
the members meet once a year to discuss
current cases and methodology develop-
ments. In addition to annual meetings,
teleconferences are held regularly to
update members on the activities of each
authority.
There is also a Nordic network for
procurement matters. Representatives for
the Nordic ministries and for authorities
that are active in the field of procurement
meet once a year to share experiences and
to discuss procurement law matters. In
2014, one meeting was held in Helsinki that
addressed such matters as the implementa-
tion of the new procurement directives, the
Swedish government’s focus on procure-
ment and support services and the potential
for an intensified Nordic cooperation on
environmental and social considerations in
public procurement. As a result of this, the
Swedish Competition Authority organised a
Nordic workshop in November at which
participants discussed and shared experien-ces about lifecycle costs, social requirements
and the monitoring of such requirements.
Other international cooperationThe Organisation for Economic Cooperation
and Development’s (OECD) Competition
Committee held three meetings during the
year, all of which the Swedish Competition
Authority attended. Topics discussed
included quantitative methods for evalua-
ting regulations and interventions by
competition authorities from the perspective
of competition law, conducting surveys on
mergers that are not subject to mandatory
notification, assessing how competition
authorities can combat corruption and
promote competition, and financing the
expansion of broadband infrastructure.
In September, the OECD adopted a new
recommendation on international coopera-
tion regarding competition law investiga-
tions and proceedings; an effort in which
the Swedish Competition Authority was
involved. Since 2010, the Swedish Competi-
tion Authority’s Director General has been a
member of the steering committee that
prepares the Competition Committee’s
agenda.
INTERNATIONAL EFFORTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 77
In the field of procurement, representatives for the Nordic ministries and for other authorities meet once a year to share experiences and to discuss procurement law matters.
78 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT INTERNATIONAL EFFORTS
The OECD’s efforts on procurement are
conducted within the framework of the
Public Governance Committee and its
underlying working groups, the Public
Sector Integrity Network and Leading
Practitioners on Public Procurement. The
Swedish Competition Authority has been a
proactive participant in meetings and
shared its experiences in drafting recom-
mendations and compendiums on green
public procurement, integrity and corrup-
tion in the public sector, as well as indica-
tors for measuring the effectiveness of
procurement systems. In November, the
OECD and the UN Environmental Program
(UNEP) organised a webinar in which the
Swedish Competition Authority presented
Sweden’s efforts on environmentally
compatible and sustainable procurement.
ICNCompetition authorities around the world
cooperate in the International Competition
Network (ICN). The Swedish Competition
Authority actively participates in all of the
network’s working groups. During the year,
eight external advisors were linked to four
working groups: cartels, mergers, advocacy
and unilateral conduct.
In partnership with the Competition and
Markets Authority (UK) and Rekabet
(Turkey), the Swedish Competition Authority
continued to lead the efforts of a group
addressing unilateral conduct. In its
continued work on a workbook on abuse of
market power, the Swedish Competition
Authority headed efforts on a chapter
addressing tying. In December, the Swedish
Competition Authority organised a webinar
discussing the framework for analysing
exclusionary abuse of dominant position.
In the cartel group, our employees have
been involved as moderators and speakers
at a seminar on cartel investigations, among
other events. We also participated in a
teleseminar to discuss settlement proceed-
ings in cartel cases, in which one of our
employees held a presentation. Employees
in the same working group co-authored a
chapter in a manual on cooperation
between competition and procurement
authorities regarding bid rigging. In the
advocacy working group for we actively
participated in efforts to draft recommen-
dations on conducting impact assessments
when implementing competition rules. In
November, one of our employees participa-
ted in a seminar on competition advocacy.
In the agency effectiveness working
group, the Swedish Competition Authority’s
Deputy Director General participated in a
seminar to discuss how different competi-
tion authorities can enhance effectiveness
in the investigation process.
At the annual ICN conference in April,
the Swedish Competition Authority was
represented in all working groups.
The 10 Year Framework Programme on Sustainable Public ProcurementThe UN’s 10 Year Framework Programme
on Sustainable Public Procurement (10YFP)
was adopted in Rio in 2012.
One of the programmes addresses
sustainable public procurement. The work
aims to disseminate information on the
importance of sustainable public procure-
ment on sustainable development and to
create partnerships to develop joint support
resources for the practical application of
procurement regulations. One of the
Swedish Competition Authority’s employees
participated in a meeting and in two
teleconferences for the programme’s
Multi-stakeholder Advisory Committee.
INTERNATIONAL EFFORTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 79
Other informationDuring the year, we hosted delegations from
Israel, Bosnia-Herzegovina, France, Thailand,
Tanzania, Belarus, Serbia and Latvia. In
addition, several of the Swedish Competition
Authority’s employees held presentations at
conference at the invitation of various
organisations and competition and procure-
ment authorities across the globe, including
Denmark, Belgium, the Faroe Islands, Italy,
Portugal, Taiwan and the US.
80 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT STAFF AND ORGANISATION
Staff and organisationDuring the year, we conducted a review of our core values, and the values that our employees and our management collectively pro-duced to represent the Swedish Competition Authority are: respect, commitment, expertise and clarity.
Read about our organisation and our approach on the following pages.
STAFF AND ORGANISATION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 81
82 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT STAFF AND ORGANISATION
Staff and organisationThe Swedish Competition Authority
monitors, evaluates and governs its
operations through operational planning
and by placing substantial emphasis on
project planning and evaluation. Other
governance and monitoring resources
include our case management system,
business and media intelligence, financial
and HR evaluations, as well as time reports.
Since 1993, we have conducted valuable
external stakeholder surveys.
On 28 November 2013, the government
tasked (N2013/5426/MK) the Swedish Legal,
Financial and Administrative Services
Agency, VINNOVA and the Swedish Compe-
tition Authority with preparing for the
transfer and integration of activities related
to their procurement support functions.
Since being tasked with this assignment,
the Swedish Competition Authority has
undergone a reorganisation that has
affected nearly the entire authority, in the
interests of best integrating this new
responsibility into our operations. Our staff
has nearly doubled in size during the year,
in part owing to the transfer of operations
and in part by way of recruitments.
Recruiting and welcoming so many
employees has been exciting and challeng-
ing. All new employees receive through
introductory training and are each assigned
a guide.
In its 2015 budget proposal, the govern-
ment announced that a new Procurement
Authority would be created as of 1 Septem-
ber 2015 and the mandate that was assig-
ned to the Swedish Competition Authority
under the decision made in November 2013
will be transferred to the new authority. On
19 December 2014, the government decided
(N2014/5319/MK) to task the Swedish
Competition Authority with preparing for
this transition. This work has begun.
In the interests of skills development and to
motivate our staff, everyone has the oppor-
tunity to get involved in the broadened
range of tasks, to be assigned new profes-
sional tasks and to participate in courses,
seminars and workshops. Many employees
also participate in various types of collabo-
rations and meetings with other authorities,
both in Sweden and abroad.
In 2014, the Swedish Competition
Authority invested SEK 2.7 million in skills
development, which corresponds to about
SEK 13,500 per employee. The more exten-
sive courses include a programme at King’s
College in London. The Nordic cooperation
within the framework of the ICN and OECD
also offers opportunities for on-the-job learning. The Swedish Competition Authority
has a national expert stationed in Brussels
at the Commission’s Directorate-General for
Competition (DG COMP) and two employees
briefly interned there.
Wellness benefits and sickness absenceWellness is something that the Swedish
Competition Authority views as an invest-
ment. All employees thus have the opportu-
nity, during working hours, workload
permitting, of engaging in one hour of
wellness activities per week. The Swedish
Competition Authority gives each employee
an allowance of up to SEK 5,000 per year to
cover wellness-related expenses. The
Swedish Competition Authority also has a
staff association called Efterverket, which
has organises various activities throughout
the year, like skiing, visits to the opera and
inspirational lectures.
The average sickness absence in 2014
was 1.8 per cent (1.3 in 2013). The Swedish
Competition Authority maintains a collabo-
ration with Previa as our health service
provider.
STAFF AND ORGANISATION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 83
Our staff has been afforded the opportunity to get involved in our broadened range of tasks, to try new professional tasks and to take courses and participate in seminars and workshops. Many employees contribute to various forms of collaboration and in meetings with other authorities, both in Sweden and abroad.
The Authority’s core values tie in with the government’s priority of main-taining a healthy administrative culture aimed at fostering a more effective and legally sound civil service, and that helps the Authority ensure that its interactions with the general public are hallmarked by the utmost dignity and respect (public ethos).
84 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT STAFF AND ORGANISATION
RespectAll of our interactions, both external and internal, are hallmarked by an openness and attentiveness to the other party’s needs and we show them respect. By being respectful of one another’s skills and differences, we can unpretentiously strive to achieve our goals in unison.
Commitment We are highly committed to our work and are forward-looking in order to stay one step ahead. This commitment leads to a sense of job satisfaction that allows everyone to feel comfortable at work and achieve favourable results in the interests of our target groups.
ExpertiseWe possess the expertise, ability and resources to fulfil our mandate and maintain a high level of quality. We harness our experience and strive to improve continuously our knowledge and methods in order to enhance and ensure the efficiency and quality of our work.
ClarityWe maintain communications that are tailored to our target groups. We are objective, impartial and open in all of our interactions, which builds confidence and credibility.
These values shall serve as the signature of all work conducted by the Swedish Competition Authority.
Core valuesDeveloping the Swedish Competition Authority’s core values has been a matter of priority for several years. During the year, while employees from three different organisations all merged under one authority, these efforts have been important and resulted in a greater sense of inclusion for everyone. The Authority’s core values group meets twice a month. The matters that are discussed are subsequently passed on to the Authority’s management team. The working group comprises one employee from each depart-ment on a rotating annual basis. The group addresses such matters as how to treat and respond to others. During the year, we conducted a review of our core values, and the values that our employees and our management collectively produced to represent the Swedish Competition Authority are: respect, commitment, expertise and clarity.
STAFF AND ORGANISATION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 85
LEGAL
T1CARTELS AND
MERGERS
T2ABUSE AND VERTICAL
RESTRAINTS
T3COMPETITION NEUTRALITY
T4PUBLIC
PROCUREMENT – ILLEGAL DIRECT
AWARD OF CONTRACTS
DIRECTORGENERAL
COMMUNICATIONSTIP-OFFS & ENQUIRIES
INTERNATIONAL
CHIEFECONOMIST
ENFORCEMENTADMINISTRATION
T5PUBLIC
PROCUREMENT – GENERAL
SUPERVISION
S1PROCUREMENT
POLICY
S2PROCUREMENT
SUPPORT
S3PURCHASING
ANALYSIS
POLICY AND SUPPORT
S4POLICY EVALUATION
AND ADVOCACY
86 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT STAFF AND ORGANISATION
OrganisationThe Swedish Competition Authority is
headed by Director General Dan Sjöblom.
He is assisted by Deputy Director General
Kristina Geiger.
The Swedish Competition Authority’s
management team comprises the Director
General, the Deputy Director General and
all the Directors of Departments. The
management team meets once a week.
Information pertinent to the entire
organisation during the year was provided
at monthly meetings for all staff and
continuously via our intranet, Kompassen.
Meetings for departments and units were
held weekly.
FactsIn 2014, the Swedish Competition Authority
has had 170 full-time equivalents, represen-
ted by 56 per cent women and 44 per cent
men. The average age is 40. Just over 90 per
cent of our staff hold graduate or postgra-
duate degrees, most of which are in law or
economics. Among our lawyers, 40 per cent
have court experience. Among our econo-
mists, just over 40 per cent hold postgradua-
te degrees, of whom 11 hold PhDs. During
the year, 73 new employees were recruited
and 10 left. In addition to in-house staff, the
Swedish Competition Authority has also
procured reception, janitorial and substitute
staffing resources from the company
Bemannia.
STAFF AND ORGANISATION SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 87
The Swedish Competition Authority’s management team as of 1 January 2015The management team comprises the Director General, the Deputy Director General
and the Directors of Departments.
From left:
Arvid Fredenberg, Chief Economist and Director of Chief Economist Department
Ylva Mannervik, Director of Policy and Support Department
Ola Billger, Director of Communications Department
Kristina Geiger, Deputy Director General and Director of Administrative Department
Dan Sjöblom, Director General
Hanna Witt, Director of Enforcement Department
Per Karlsson, Chief Legal Officer and Director of Legal Department
Karin Lunning, Director of International Department
88 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 89
Facts and financial statementsIn the ‘Facts in brief’ section, we present statistics relating to the Swedish Competition Authority’s law enforcement and supervision cases, as well as official consulta-tions. The Swedish Competition Authority also works on proposals for regulation amendments and other improvement measures, and provides support for research projects and international efforts.
90 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Case statistics Costs include indirect costs and are reported by cases concluded 2014 2013 2012
Competition Act cases Estimated annual cost, including indirect costs, (SEK ‘000) 1 105 052 85 344 88 246 Time spent (of total time) per cent 61 65 67 Average processing time for concluded cases, calendar days 112 126 130 Anti-competitive cooperation 2
Registered 16 22 27Concluded 14 19 23
Concluded cases: Average processing time for concluded cases, calendar days 3 398 234 260 Average number of hours spent per case 4 1 664 867 949 Estimated cost per case, including indirect costs, (SEK ‘000) 5 1 005 517 569 In 2014, three particularly extensive cases were concluded for which a total of 19,241 hours were registered and 2,443 calendar days. Abuse of a dominant position 2
Registered 5 12 6 Concluded 8 9 12 Concluded cases: Average processing time for concluded cases, calendar days 3 246 159 287 Average number of hours spent per case 4 1 667 364 1 358 Estimated cost per case, including indirect costs, (SEK ‘000) 5 1 007 217 815 Anti-competitive public sales activities 2
Registered 13 4 8 Concluded 9 4 11 Concluded cases: Average processing time for concluded cases, calendar days 3 182 463 240 Average number of hours spent per case 4 595 1 843 690 Estimated cost per case, including indirect costs, (SEK ‘000) 5 359 1 098 414
Notifications of mergers
Registered 67 48 36 Concluded 65 45 42 Concluded cases: Average processing time for concluded cases, calendar days 3 26 31 29 Average number of hours spent per case 4 124 221 257 Estimated cost per case, including indirect costs, (SEK ‘000) 5 75 132 154 In 2012 and 2013, there were three cases concluded in each year that became in-depth investigations, while two cases were concluded in 2014.
Facts in brief
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 91
2014 2013 2012 Other merger cases
Registered 42 28 30 Concluded 44 28 30 Concluded cases: Average processing time for concluded cases, calendar days 3 37 38 32 Average number of hours spent per case 4 25 24 41 Estimated cost per case, including indirect costs, (SEK ‘000) 5 15 14 25 Court cases
Registered 7 5 4 Concluded 5 6 3 Concluded cases: Average time to complete cases at court, calendar days 6 743 806 300 Average number of hours spent per case 4 889 2 612 482 Estimated cost per case, including indirect costs, (SEK ‘000) 5 537 1 557 289 In 2013, the case that was launched against TeliaSonera in 2004 was concluded. Total number of Competition Act cases
Registered 150 119 111 Concluded 145 111 121
2014 2013 2012
Public Procurement Act Estimated annual cost, including indirect costs, (SEK ‘000) 1 22 273 21 182 18 962 Time spent (of total time) per cent 13 16 14 Average processing time for concluded cases, calendar days 258 218 187 Supervision cases etc.
Registered 123 98 96 Concluded 107 89 102 Concluded cases: Average processing time for concluded cases, calendar days 3 210 177 184 Average number of hours spent per case 4 67 65 33 Estimated cost per case, including indirect costs, (SEK ‘000) 5 39 38 19 Court cases
Registered 19 23 24 Concluded 24 20 14 Concluded cases: Average time to complete cases at court, calendar days 7 471 403 207 Average number of hours spent per case 4 58 94 46 Estimated cost per case, including indirect costs, (SEK ‘000) 5 34 55 27
Act on System of Choice in the Public Sector Estimated annual cost, including indirect costs, (SEK ‘000) 1 656 1 862 733 Time spent (of total time) per cent 0,4 2 1 Average processing time for concluded cases, calendar days 150 154 304
Registered 5 4 1 Concluded 6 3 2 Concluded cases: Average processing time for concluded cases, calendar days 3 150 154 304 Average number of hours spent per case 4 64 543 392 Estimated cost per case, including indirect costs, (SEK ‘000) 5 38 318 230 Concluded government assignments are reported separately, and are not included in this summary.
Improvement measures in public procurementTime spent (of total time) per cent 13 2 -Estimated annual cost, including indirect costs, (SEK ‘000) 1 23 353 2 542 - The cost allocation model used this year was the same as in the past; for the reporting of the procurement support function’s actual costs, refer to the financial review section.
The year-on-year increase from 2013 to 2014 was attributable to the Swedish Competition Authority’s 2014 takeover of procurement support services from the Swedish Legal, Financial and Administrative Services Agency, VINNOVA and the Swedish Environmental Management Council.
No calculations for time spent or estimated annual cost were made in 2012.
92 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 93
2014 2013 2012
Responses to official consultations Official consultations responded to 126 211 167 Time spent (of total time) per cent 3 4 3 Estimated cost per matter, including indirect costs, (SEK ‘000) 5 37 22 26 Key figures Total area of premises per employee, sqm 21 21 21 Leasing costs per employee and year, (SEK ‘000) 85 89 87
1) Total administrative cost distributed according to time registered during the year.2) Also includes the cases that were registered as tip-off cases and investigated by the Enforcement Department.3) From the date the case was opened until it was closed. 4) Registered hours from the time the case was opened until it was closed. 5) Total 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.6) From the date the Swedish Competition Authority submitted a summons application to Stockholm District Court until the case was settled in the final instance. 7) From the date the Swedish Competition Authority submitted a summons application to the Administrative Court until the case was settled in the final instance.
94 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Activities financed by appropriations and contributions (SEK ‘000) Appropriations Other income Costs Year 2014 2013 2012 2014 2013 2012 2014 2013 2012
Competition 1 116 936 104 769 104 012 772 1 562 2 478 116 847 106 331 106 490Public Procurement 1 27 430 28 491 30 035 1 181 977 - 28 408 29 468 30 035Procurement support function 2 - - - 31 489 - - 32 553 - -Total 144366 133 260 134 047 33442 2 539 2 478 177808 135 799 136 525
1) The distribution of costs and appropriations is based on registered time2) Personnel and premises costs are actual costs; other costs were allocated on the basis of registered time.
Revenue collection (SEK ’000) Income Contributed to Central Government budget Year 2014 2013 2012 2014 2013 2012
Competition fines 2 479 35 000 11 390 2 479 35 000 11 390 Procurement fines 13 704 7 287 883 13 704 7 287 883 Total 16 183 42 287 12 273 16 183 42 287 12 273
Transfers (SEK ‘000) Received from Central Government Contributions paid Financial costs budget/other public authorities Year 2014 2013 2012 2014 2013 2012 2014 2013 2012
Competition 7 310 16 267 6 461 7 300 16 267 6 459 10 0 2 of which, court costs 1 457 9 000 256 1 447 9 000 254 10 0 2 of which, research 5 853 7 267 6 205 5 853 7 267 6 205 0 0 0Public Procurement 3 870 3 272 3 848 3 870 3 272 3 848 0 0 0 of which, research 3 870 3 272 3 848 3 870 3 272 3 848 0 0 0Total 11 180 19 539 10 309 11 170 19 539 10 307 10 0 2
Assignments under instructions, appropriation directions and special assignments (SEK ‘000)
Ref. no. Assignment Funds received Costs incl. overheads
517/2013 Assignment to evaluate the care choice system in the 1 000 1 918 field of primary care and specialised outpatient care
727/2013 Assignment to prepare for the transfer and integration of - - certain duties concerning procurement support
759/2013 Assignment to conduct a preliminary study on electronic procurement - 229
160/2014 & Assignment to develop and proactively spread guidance services 2 361 554246/2014 for the procurement of health and medical care and to operate a national database for the notification of the system of choice
247/2014 Assignment to hold training courses in the procurement of 1 100 728 health and medical care for the elderly
278/2014 Assignment to provide guidance services for the procurement - 252 of elderly housing
Financial review
Reports issued on government assignments
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 95
(SEK ‘000) 2014 2013 2012 2011 2010
Credit line granted by the Swedish National Debt Office 12 000 12 000 12 000 12 000 12 000Credit line drawn at the end of the financial year 4 995 2 735 5 235 6 747 6 424 Account credit granted with the Swedish 18 000 8 000 8 000 8 000 8 000 National Debt Office Account credit drawn over the year 0 0 0 0 345 Interest expense on interest account - 1 - - -Interest income on interest account 88 193 247 304 54 Income from charges, etc. that the Authority appropriates 853 1 352 2 176 971 2 181(the Authority appropriates of all income from charges, etc.) Total income calculated under Appropriation Directions 1 200 1 200 1 200 1 200 1 200 Appropriation credit granted 24 01:15 Appropriation envelope 13 789 4 030 3 983 3 835 3 79724 01:16 Competition research 411 411 405 430 39524 01:21 Financing of litigation costs 1 800 1 800 1 800 1 000 1 000 Appropriation credit drawn - - - - - Appropriation savings 24 01:15 Appropriation envelope 1 711 7 368 3 235 2 025 3 76924 01:16 Competition research 103 257 900 361 21024 01:21 Financing of litigation costs 16 542 9 000 17 744 19 823 28 626 FTEs 170 132 134 124 121Average number of employees 197 152 154 138 136Annual operating cost per employee 1 033 1 007 996 1 069 1 039 Change in capital for the year - - - - 700Change in capital brought forward - - - - -700Transfers according to Note 10 Authority Capital - - - - -Closing authority capital - - - - -
Summary of significant information
96 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
(SEK ‘000) Note 2014 2013
Operating income Income from appropriations 144 366 133 260Income from charges and other payments 2 853 1 352Income from grants 3 32 489 977Financial income 4 100 210Total 177808 135 799 Operating expenses Employee benefit expenses 5 -133 278 -100 014Expenses for premises -17 833 -14 290Other operating costs -24 447 -18 851Financial expenses 4 -20 -54Depreciations and impairments 6 -2 230 -2 590Total -177808 -135 799
Operational results 0 0 Revenue collection work 7 Unappropriated income from charges and other payments 16 183 42 287Funds contributed to Central Government Budget -16 183 -42 287Balance 0 0 Transfers 8 Funds received from Central Government Budget to finance grants 11 180 19 539Financial costs -10 0Grants paid -11 170 -19 539Balance 0 0
Change in capital for the year 0 0
Income statement
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 97
Assets (SEK ’000) Note 31/12/2014 31/12/2013
Tangible assets 6 Cost of improvements to leased property 687 979 Machinery, equipment, fixtures and fittings, etc. 4 121 1 855Total 4 808 2 834 Short-term receivables Accounts receivable 9 2 3Receivables from other public authorities 10 3 394 1 739Other short-term receivables 11 58 59Total 3 454 1 801 Cut-off items Prepaid expenses 12 6 304 4 240Total 6304 4 240 Settlement account with the government Settlement account with the government 13 -933 -6 784Total -933 -6 784 Cash and bank balances Balance in interest account with Swedish National Debt Office 14 19 917 18 922Total 19 917 18 922
Totalassets 33550 21 013
Capital and liabilities (SEK ’000) Authority Capital Change in capital brought forward 0 0Change in capital as per income statement 0 0Total 0 0 Provisions Provisions for pensions and similar obligations 15 1 270 1 258Total 1 270 1258 Liabilities etc. Loans from Swedish National Debt Office 16 4 995 2 735Short-term liabilities to other public authorities 17 4 062 3 051Accounts payable 5 692 3 338Other short-term liabilities 18 2 466 1 714Total 17215 10 838 Cut-off items 19 Accrued expenses 11 728 8 394Unappropriated contributions 3 337 523Total 15 065 8917
Totalcapitalandliabilities 33550 21 013
Balance sheet
98 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Statement of appropriations (SEK ‘000)
as of 31 December 2014 Allocation for the year Opening under Total Closing transfer Appropriation With- available Expen- transfer Appropriations amount Directions drawal amount diture amount
24 01:15 ap.1 Swedish Competition Authority, 7 368 137 892 -3 339 141 922 -140 210 1 711 appropriation envelope24 01:16 ap.1 Competition research, 257 13 685 13 942 -13 839 103 appropriation envelope 24 01:21 ap.2 Financing of litigation costs, 9 000 18 000 -9 000 18 000 -1 458 16 542 appropriation envelope Totalappropriations 16 626 169 577 -12 339 173 864 -155507 18357
Statement of revenue title (SEK ’000) as of 31 December 2014 Revenue title 2714 Financial penalties, etc. Income
Administrative fines 2 479 Procurement fines 13 704 Totalfinancialpenalties 16 183
Statement of charge activity where the income is appropriated (SEK ’000) through 2012 2013 2014 2014 2014 2014Activity +/- +/- Income Expense +/- +/-
Charge income, Swedish Post and Telecom 0 0 723 -723 0 0Charge income, SIDA 0 0 89 -89 0 0Charge income, other - - 41 - - -Total charge income 853 -812
Statement of appropriations
Note 1 Accounting policies
This annual report was prepared in accordance with the Ordinance (2000:605) concerning Annual Reports and Budget Documentation. The Swedish Competition Authority’s reporting complies with 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. Fixed assets
All acquisitions with an economic life of at least three years and a cost of at least half of one base amount are recognised 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 recognised 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 Depreciation period
Computers and accessories 3 yearsOther office equipment 5 yearsFurniture 6-10 yearsCost of improvements to leased property 6 years Other
The Director General’s monthly salary is SEK 115,000. The Director General has a car for business and private use. Total gross earnings paid in cash for 2014 amount to SEK 1,381,937. The Director General has not reported involvement in any additional assignments.
Note 2 Income from charges and other payments, subtotal (SEK ’000) 2014 2013
Publication sales under Section 4 of the Fees Ordinance 10 14Income under Section 15 of the Fees Ordinance (copies etc.) 26 18Payments from SIDA for aid projects 89 720Payments from the Swedish Post and Telecom Authority 723 600Other income 5 -Totalincome 853 1 352
Notes
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 99
100 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Note 3 Income from grants (SEK ’000) 2014 2013
The Ministry of Health and Social Affairs – evaluate the care choice 1 000 977system in the field of primary care and specialised outpatient care
The Ministry of Health and Social Affairs – develop and proactively 554spread guidance services for the procurement of health and medical care and to operate a national database for the notification of the system of choice
The Ministry of Health and Social Affairs – hold training courses in 728the procurement of health and medical care for the elderly
The Ministry for Rural Affairs – skills-enhancing initiatives for 158the public procurement of food
Ministry of the Environment and Energy – procurement criteria and comprehensive support for a nontoxic preschool environment
The Ministry of Enterprise, Energy and Communications – develop and deliver 960lists of energy-efficient goods as a form of support for contracting parties
The Swedish Environmental Protection Agency 5 750– procurement support functions
VINNOVA – procurement support functions 7 500
The Swedish Legal, Financial and Administrative Services Agency 15 200– procurement support functions Totalincomefromgrants 32489 977
Note 4 Financial income and expenses (SEK ’000) 2014 2013
Interest income linked to interest account at the Swedish National Debt Office 88 193Other financial income 12 17Total financial income 100 210 Interest expenses linked to loans with the Swedish National Debt Office 13 46Other financial expenses 7 8Total financial expenses 20 54
Note 5 Employee benefit expenses (SEK ’000) 2014 2013
Payroll expenses (excl. employer’s contributions, contract premiums and other statutory and contractual charges) 85 624 64 258Other employee expenses 47 654 35 756Totalemployeebenefitexpenses 133278 100 014
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 101
Note 6 Tangible assets (SEK ’000) 31/12/2014 31/12/2013
Cost of improvements to leased property Opening balance – costs 4 300 4 300The year’s acquisitions 500 -The year’s disposals - -Closing balance – costs 4 800 4 300 Depreciations Opening accumulated balance 3 321 2 528The year’s depreciations 792 793The year’s disposals - -Closing accumulated balance 4 113 3 321
Bookvalue 687 979 Other Opening balance – costs 8 502 8 446The year’s acquisitions 1 753 90The year’s disposals 0 -34Closing balance – costs 10 255 8 502 Depreciations Opening accumulated balance 7 369 6 805The year’s depreciations 417 598The year’s disposals 0 -34Closing accumulated balance 7 786 7 369
Bookvalue 2469 1 133 Computers Opening balance – costs 4 199 4 202The year’s acquisitions 1 950 99The year’s disposals 0 -102Closing balance – costs 6 149 4 199 Depreciations Opening accumulated balance 3 477 2 380The year’s depreciations 1 021 1 199The year’s disposals 0 -102Closing accumulated balance 4 498 3 477
Bookvalue 1 652 722
102 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Note 7 Revenue collection activities (SEK ’000) 2014 2013
Unappropriated income from charges etc. Administrative fines 2 479 35 000Procurement fines 13 704 7 287Totalrevenuecollectionactivities 16 183 42 287
Note 8 Transfers (SEK ’000) 2014 2013
Research grants 9 723 10 539Compensation for litigation costs 1 457 9 000Totaltransfers 11 180 19 539
Note9 Accounts receivable (SEK ’000) 2014 2013
Accounts receivable 2 3
Note 10 Receivables from other public authorities (SEK ’000) 2014 2013
Receivable in respect of input value added tax 2 671 1 684Receivable from other public authorities 723 55Total 3394 1 739
Note 11 Other receivables (SEK ’000) 2014 2013
Receivable from the European 35 59Commission 23Total 58 59
Note 12 Cut-off items, prepaid expenses (SEK ’000) 2014 2013
Rent paid in advance 4 991 3675Other prepaid expenses 1 313 565Total 6304 4 240
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 103
Note 13 Settlement with the government (SEK ’000) 2014 2013
Revenue collection Opening balance 0 0Recognised under revenue title -16 183 -42 287Revenue collection funds paid to non-interest-bearing flow 16 183 42 287Funds from interest account that contributed to revenue title Liabilities relating to revenue collection 0 0 Appropriations in non-interest-bearing flow 24 01:21 Financing of litigation costs, appropriation envelope Opening balance 0 0Recognised against appropriations 1 458 9 000Funds attributable to transfers paid to non-interest-bearing flow -1 458 -9 000Receivables relating to appropriations in non-interest-bearing flow 0 0 Appropriations in interest-bearing flow Opening balance -7 626 -4 135Recognised against appropriations 24 01:15 Appropriation envelope 140 210 130 185 24 01:16 Competition Research, appropriation envelope 13 839 13 834Totalrecognisedagainstappropriations 154049 144 019Appropriated funds added to interest account 24 01:15 Appropriation envelope -137 892 -134 319 24 01:16 Competition Research, appropriation envelope -13 685 -13 686Totalappropriatedfundscontributingtotheinterestaccount -151 577 -148 005Repayment of appropriated funds 24 01:16 Competition Research, appropriation envelope 3 339 495Totalappropriatedfundsrepaidtointerestaccount 3 339 495 Liabilitiesrelatingtoappropriationsininterest-bearingflow -1814 -7 626 Receivables relating to holiday pay liability that have not been recognised under appropriations Opening balance 842 1 062Recognised against appropriations over the year under the exception clause 39 -220Receivables relating to holiday pay liability that have not been recognised under appropriations 881 842
Totalsettlementwiththegovernment -933 -6784
Note 14 Balance in interest account with Swedish National Debt Office (SEK ’000) 2014 2013
Appropriation savings on the appropriation 24 01:15 Swedish Competition Authority 1 711 7 368Appropriation savings on the appropriation 24 01:16 Competition research 103 257Other funds 18 103 11 297
Totalbalanceininterestaccount 19917 18922
104 SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT FACTS AND FINANCIAL STATEMENTS
Note 15 Provisions for pensions and similar obligations (SEK ’000) 2014 2013
Opening balance, pensions 1 258 1 854Provision for pensions -195 -1 000Special payroll tax for pension provisions -47 -242Provision for skills transfer 254 646Closing balance 1 270 1 258
Note 16 Loans from Swedish National Debt Office (SEK ’000) 2014 2013
Credit line granted 12 000 12 000Opening balance 2 735 5 235New loans raised over the year 4 303 90Repayments over the year 2 043 2 590Totalclosingbalance 4995 2 735
Note 17 Short-term liabilities to other public authorities (SEK ’000) 2014 2013
Liability to the Swedish Tax Agency (employer’s contributions, etc.) 2 620 1 766Accounts payable 1 227 1 083Other short-term liabilities to other public authorities 215 202Total 4062 3 051
Note 18 Other short-term liabilities (SEK ’000) 2014 2013
Employee withholding tax 2 461 1 714Other liabilities to staff 3 -Other short-term liabilities 2 -Total 2466 1 714
Note19Cut-off items (SEK ’000) 2014 2013
Accrued holiday pay liability, including social security contributions 10 366 6 873Accrued salary payments 0 56Other accrued costs, governmental 125 165Other accrued costs, non-governmental 1 237 1 300Totalaccruedexpenses 11728 8394Unappropriated grants from other public Authorities 3 337 523Totalunappropriatedgrants 3 337 523Totalcut-offitems 15065 8917
FACTS AND FINANCIAL STATEMENTS SWEDISH COMPETITION AUTHORITY 2014 ANNUAL REPORT 105
Note 20 Sickness absence (per cent) 2014 2013
Total 1,8 1,3Women 2,4 1,4Men 1,1 1,0Employees aged 29 and under 1,3 0,9Employees aged 30-49 2 1,4Employees aged 50 and over 1,6 1,0Long-term sick leave as a percentage of the total number on sick leave (60 days or more) 20,6 16,6
Stockholm, 12 February 2015
I hereby certify that this annual report provides a fair and accurate illustration of
operational performance, as well as the income and expenditure of the Swedish
Competition Authority and its financial position.
Dan Sjöblom Director General
GENERALDIREKTÖREN HAR ORDET KONKURRENSVERKET ÅRSREDOVISNING 2014 106
Project owner: Kristina GeigerProject manager: Rose-Marie Kellquist SundströmEditor: Katarina Bentzer Berglind and Cecilia TollefeldtProject staff: Christofer NäsholmProject assistant: Marcus LindDesign and production: Mari Forsell Design ÅreImages: Photographer Andreas Eklund AB and photo agency MattonPrint: Wikströms, Uppsala
Address SE-103 85 StockholmPhone +46 8-700 16 00Fax +46 8-24 55 43konkurrensverket@kkv.se
top related