Switzerland’s competition authority has opened two investigations into suspected anti-competitive practices in online search advertising, targeting businesses in the travel and online gambling sectors.
The Swiss Competition Commission, known as Swiss Competition Commission (Comco), said it is examining whether companies agreed not to compete against one another when bidding for advertising space on major search engines.(Swissinfo)
According to the regulator, the first investigation concerns three companies offering package holidays in Switzerland, while the second involves nearly all licensed online casinos operating in the country. Comco did not identify the companies under investigation and emphasized that they benefit from the presumption of innocence.
The cases focus on keyword advertising, a common digital marketing practice in which businesses bid for search terms so their offerings appear prominently when users search online. Comco said it had received information suggesting that companies in both sectors may have coordinated their bidding strategies by agreeing not to bid on keywords linked to rival brands.
Such arrangements can reduce competition in search advertising and may make it harder for consumers to compare competing offers, particularly in markets where online search visibility plays a major role in customer acquisition.
Comco said the conduct under review could amount to an unlawful agreement under Swiss competition law if the companies coordinated to avoid competing for advertising placement. The authority added that such behavior may distort consumer choice and harm market transparency by limiting the range of visible alternatives presented in search results.
The investigations reflect growing regulatory scrutiny of digital advertising practices, including agreements involving keyword bidding and restrictions on brand-based advertising. Competition authorities in multiple jurisdictions have increasingly examined whether agreements limiting search advertising competition amount to market-sharing or customer-allocation arrangements.
The Swiss investigations remain at an early stage, and Comco has not reached any conclusions on whether the conduct violated competition rules.
