News

Shaking hands

Comco approves transaction Liberty Global | Sunrise

Swiss Competition Commission (COMCO) cleared the transaction Sunrise | Liberty Global. Swiss Economics accompanied the examination from the outset with economic expertise.

 

Swiss Economics unterstütze Sunrise in diesem Verfahren in enger Zusammenarbeit mit der Anwaltskanzlei Lenz & Staehelin. Unser Team umfasste Samuel Rutz, Michael Funk, Matthias Hafner und Christian Jaag.

Swiss Economics hatte Sunrise bereits im letztjährigen Fusionskontrollverfahren bezüglich der umgekehrten Transaktion erfolgreich unterstützt. Schon damals hatte die WEKO den Zusammenschluss nach vertiefter Prüfung bedingungslos freigegeben. Anschliessend lehnte jedoch die Mehrheit der Aktionäre/innen die Übernahme ab. Nach erneuter Prüfung kam die WEKO zum Schluss, dass die Marktverhältnisse seither weitgehend unverändert blieben.

Zur Medienmitteilung der Wettbewerbskommission

Someone hands out a diploma

Swiss Economics team members have been recognized by Who’s Who Legal 2020

Who’s Who Legal 2020 featured Samuel Rutz, Michael Funk and Christian Jaag for their outstanding work in competition economics.

 

Samuel Rutz is mentioned in the following categories:

  • - Competition - Economists
  • - Experts - Economics - Competition Economists

WWL says: Samuel Rutz is a well-recognised figure in the Swiss market who is commended for his profound knowledge of competition regulation and policy.

To Samuel's profile on WWL

 

Michael Funk is mentioned in the following categories:

  • - Competition Future Leaders - Economists
  • - Experts - Economics - Competition Economists - Future Leaders

WWL says: Michael Funk receives widespread commendations for his excellent practice, which sees him provide commercially astute analysis on competition policy issues.

To Michael's profile on WWL

 

Christian Jaag is mentioned in the following categories:

  • - Competition - Economists
  • - Experts - Economics - Competition Economists
  • - Switzerland - Competition Economists

WWL says: Christian Jaag is "highly recommended" as "one of the very best competition economists in Switzerland". Peers and clients say: "Christian is brilliant at connecting academic and abstract thinking to concrete business needs."

To Christian's profile on WWL

 

Airport waiting room

What drives airports' Beta risk?

Swiss Economics Principal Tobias Binz discusses this question in an article published in the latest issue of Competition and Regulation in Network Industries.

He uses a microeconomic framework to illustrate how firm and market characteristics determine the extent to which economy-wide demand shocks are translated into profit fluctuations. The findings may help regulators to improve the composition of the peer groups that are used to assess airports' Beta risk.

The published article can be accessed online through Competition and Regulation in Network Industries' website. A working paper version is available here.

Smartphone, diary, laptop on the table

Fair Price Initiative: More industrial than competition policy

The Fair Price Initiative aims to introduce the concept of "relative market power" to Swiss competition law. However, from an economic point of view, the concept is not an appropriate instrument to combat the high prices in Switzerland.

 

Read more (German)

Disinfectant and mask

Effectiveness of non-pharmaceutical measures to contain the spread of the coronavirus

Swiss Economics was commissioned by the Swiss State Secretariat for Economic Affairs (SECO) to conduct a meta-analysis on the effectiveness of non-pharmaceutical measures to contain the spread of the coronavirus.

On the 27th of April, two months after they were first introduced, the federal government started to relax the measures to contain the spread of the new coronavirus (SARS-CoV-2). It cannot be ruled out that this easing will lead to a renewed increase in infection rates or even a second wave of infections.

The Swiss Economics study provides an overview of available evidence on the effectiveness of various measures and indicates which measures would be particularly appropriate to implement in case infection rates start to increase again.

Read more

Airport, Aircraft

Panel decides in favor of Irish Comission for Aviation Regulation

Swiss Economics supported the Irish Commission for Aviation Regulation in determining capital costs over the 2020-24 regulatory period. The Appeals Panel has decided in favour of the Commission of Aviation Regulation regarding appeals about capital costs.

 

Swiss Economics supported the Irish Commission for Aviation Regulation (CAR) in determining capital costs (WACC) over the 2020-24 regulatory period. After CAR published its projections, appeals have been made by Dublin Airport and Raynair. Among other points, the appeals targeted capital costs. An independent panel has now rejected most points of these appeals including the capital costs. CAR welcomes the decision of the panel and its argumentation. The panel stated that the numbers rely on the evaluation of the current economic conditions and conform with statutory requirements.

Press Release from the Commission for Aviation Regulation (2 June 2020)

Arbitration Hammer

Sunrise sues Swisscom for damages following an abuse in the ADSL wholesale market

Sunrise claims damages of CHF 350 million from Swisscom for abuse of its dominant position in the ADSL wholesale sector. Swiss Economics has supported Sunrise in quantifying the harm from the infringement.

Extract from the press release:

Swisscom abused its dominant market position from 2001 to 2007, and unlawfully hindered the competition with its pricing policy for ADSL services. The former monopolist practised a margin squeeze which made it impossible for Sunrise as a wholesale customer, to operate its ADSL business profitably.

This was confirmed by the Federal Supreme Court on December 9, 2019 after a ten-year appeal process. Swisscom was sentenced to a fine of CHF 186 million.

On the basis of this ruling, Sunrise is claiming damages of CHF 350 million plus interest from Swisscom.

Sunrise commissioned the renowned consulting company Swiss Economics to calculate the damage to Sunrise. This is due to the loss of market share and prevented gain in the broadband Internet market and adjacent markets (landline and mobile communications). The total amounts to CHF 457 million, a greater number than originally assumed. As a precautionary measure to prevent limitation, Sunrise had interrupted the statute of limitation for a claim of CHF 350 million and is filing a claim for damages of CHF 350 million plus interest with the Bern Commercial Court today.

Press release of Sunrise

Our team includes Christian Jaag, Michael Funk and Matthias Hafner.

SBB Cargo train

Swiss Competition Commission approves freight business merger

The Swiss Competition Commission has approved a merger between Swiss railway company SBB Cargo and several road freight firms without imposing any remedies. Swiss Economics provided economic evidence related to efficiencies arising from the merger to inform the Commission's thinking.

The Competition Commission found that the investment of Swiss Combi (a joint venture of Planzer, Camion-Transport, Galliker, and Bertschi) in SBB Cargo does not eliminate competition in any of the concerned markets. The decision will increase the economic viability of the Swiss rail freight business and will lead to innovative new services being made available.

During Phase II of the investigation, Swiss Economics, in collaboration with SBB Cargo and law firm Walder Wyss, produced detailed economic evidence of the investment's effects on competition and welfare.  The engagement was led by Samuel Rutz, Michael Funk, and Tobias Binz.

 

Welcome to Swiss Economics

We welcome our new team member Dr. Ann-Kathrin Crede, focusing on Behavioral Economics.

Ann-Kathrin Crede works as an economist with a focus on Behavioral Economics. She graduated with her PhD in Behavioral and Experimental Economics at the University of Bern and gained experience in running laboratory and field experiments and in applying behavioural insights to organizations during her time as a research assistant.

She holds a Master’s degree in Economics from the University of Passau and a Bachelor’s degree in Business & Economics and French from the University of Kassel.

Airport, Aircraft

Swiss Economics assesses Beta risk of Parisian airports

The French Autorité de régulation des transports (ART) has published its opinion on the appropriate level of the Weighted Average Cost of Capital (WACC) for Parisian airports Charles de Gaulle, Orly, and Le Bourget.

The opinion will play a central role in the negotiations between Aéroports de Paris Group and the French government regarding the Economic Regulation Agreement over the 2021-25 period.

For the assessment of Beta risk, the regulator relied on evidence provided by Swiss Economics. Our contribution was twofold. First, we analysed what drives airports’ systematic risk and defined risk categories for airports under ART’s mandate. Second, we identified valid comparator airports and determined the level of their Beta risk, using regression analysis of stock returns. Our reports on drivers of Beta risk and comparator Betas can be downloaded directly from ART’s website:

Report on drivers of Beta risk
Report on comparator Betas

wwl Switzerland Logo

Team members of Swiss Economics awarded by Who is Who Switzerland 2020

Team members of Swiss Economics awarded by Who is Who Switzerland 2020.

Christian Jaag and Samuel Rutz are highlighted for their excellent work as Competition Economists:

“At Swiss Economics, Christian Jaag has an exemplary ability ‘to convey and explain highly complex matters’ to peers and clients alike. His knowledge and skillset make him a ‘brilliant economist to work with’ and one of the leading names in Switzerland.”

“Samuel Rutz of Swiss Economics has wide-ranging knowledge and extensive experience of competition regulation and policy matters in Switzerland.”

More...

#whoswholegal #wwl #competition

jaag_christian

Christian Jaag receives prestigious Who's Who Legal and Client Choice awards

Who's Who Legal and Client Choice honoured Christian Jaag as the best Competition Economist in Switzerland in 2020.

At the inaugural Who's Who Legal Switzerland Awards ceremony on February 12, 2020, in Zurich Christian Jaag received the Competition Economist of the Year 2020 Award. Each year Who's Who Legal presents awards to individuals that have performed exceptionally well in each of the featured practice areas according to Who's Who Legal's research.

To the WWL Switzerland award winners

In addition, Christian Jaag was recently rewarded with the Lexology Client Choice award also for his work as a Competition Economist.

Established in 2005, Client Choice recognises those individuals around the world that stand apart for the excellent client care they provide and the quality of their service. The criteria for this recognition focus on the ability to add real value to clients’ businesses above and beyond the other players in the market.

To the Lexology Client Choice award winners

Davos and a mountain

Swiss Economics meets Blockchain in Davos

The World Economic Forum (WEF) attracted not only politicians, managers and scientists to Davos but also Blockchain experts, start-ups and investors. Swiss Economics was delighted to exchange views with them.

During the World Economic Forum (WEF), the incubation space provider of the largest Swiss Blockchain Venture Capitalist, CV Labs, organized several events in Davos designed to showcase and discuss the Blockchain ecosystem. Since Christian Jaag, Matthias Hafner and Jan Christoph Schlegel are mentoring start-ups from the CV Labs incubation program, we were happy to see them pitch and progress, and to exchange views about current topics in the Blockchain ecosystem. Discussions included successful projects Swiss Economics supported in the past. CV VC proudly stated that there are now over 800 Blockchain companies in Switzerland and Lichtenstein. Swiss Economics is looking forward to new exciting collaborations in the Blockchain industry.

On the importance of economic analyses in antitrust proceedings

Swiss Economics Principal Michael Funk presents his views on the importance of economic analyses in antitrust proceedings during the “Swiss Network on Public Economics”-Workshop at ETH Zurich

At the first workshop of the "Swiss Network on Public Economics" Michael Funk presented a paper on the importance of economic analyses in antitrust proceedings. The focus was on the most recent development in Switzerland, which has resulted in the marginalisation of the economy. This development contrasts with the development in the European Union, where the negative effects of a violation of antitrust law are generally the focus of the proceedings.

The aim of the newly founded network is to strengthen relations between academics and practitioners at universities, in public administrations, the Swiss National Bank and private institutions.

Christian Jaag recognized as thought leader for competition

Congratulations to Swiss Economics Counsel Christian Jaag for being recognized as a thought leader in the topic of competition by Who's Who Legal.

Presentation

Swiss Economics mentors blockchain start-ups in Zug

Swiss Economics supports the second incubation program of the largest investment ecosystem for start-ups using the Blockchain technology in Zug, Switzerland (CV Labs Incubation Program).

Recently, Christian Jaag and Matthias Hafner met the start-ups and presented their expertise and experience in platform and monetary economics for token-based projects. In their workshop they discussed characteristics, considerations and decisions to be made when designing token-based ecosystems.   

To the presentation

Promotions in the team

Swiss Economics congratulates Lilia Habibulina, Nicolas Eschenbaum and Romain de Luze on their promotions. We thank them for their support to date and wish them continued success.

Lilia Habibulina has been promoted to Senior Economist. She specialises in applying quantitative methods to regulatory questions and has extensive experience in estimating the cost of capital and in econometric modelling. Prior to joining Swiss Economics, she was a PhD candidate and postdoctoral researcher at the University of Zurich.

Nicolas Eschenbaum has been promoted to Managing Economist and has joined Swiss Economics’ executive board. He is responsible for the development and application of artificial intelligence (AI). His work focuses on competition policy as well as market regulation and market design—particularly in the context of algorithms and AI—across various sectors, including digital markets and energy. He is currently leading, among other assignments, a project for DG Comp.

Romain de Luze has also been promoted to Managing Economist and has joined Swiss Economics’ executive board. He additionally leads the Lausanne office and is responsible for business development in French-speaking Switzerland. His expertise focuses on the analysis of regulatory issues, financial modelling and strategic advisory work, particularly in the energy and transport sectors.

Dialogue on the future of the Swiss financial market

We would like to thank all participants and our colleague Michael Altorfer for his valuable contributions to the panel on the future of the Swiss financial market at the NextGen Impact Forum.

The forum brings together committed voices from academia, practice and politics to shape the change towards a more sustainable financial world.

Congratulations on the successful launch of the NextGen Impact Forum at the University of St. Gallen (HSG)!

We are pleased to announce the opening of our office in Lausanne.

You can find us at Rue du Liseron 7, 1006 Lausanne.

Since the beginning of April, you can find us at Rue du Liseron 7, in addition to our Zurich office.

This opening marks an important new milestone for us: getting closer to our partners in French-speaking Switzerland and strengthening our presence in the region. Being on site means having more opportunities to collaborate, to connect more frequently, and to support projects with even greater proximity and responsiveness.

We look forward to welcoming you there, to continuing to grow our collaborations… and to starting new ones!

Promotions in the team

Since the beginning of the year, Nina Schnyder has joined our team full-time as a Senior Economist and Michael Altorfer as an Economist. We would like to thank them for their support so far and wish them exciting projects for the future.

Michael Altorfer is joining Swiss Economics full-time after completing his studies. His focus is on energy economics, valuations and data analysis. In his Master's, he completed a double degree in economics and international management at the University of St. Gallen and the Stockholm School of Economics, with a focus on data science and climate economics.

Nina Schnyder has been with Swiss Economics since 2024 and has now been promoted to Senior Economist. Nina focuses on the areas of valuation, dispute resolution and regulatory economics, and she regularly advises and supports clients in arbitration and litigation cases and will continue working in these areas as Senior Economist. In addition, she is a CFA Level I candidate and is preparing to take her exam in February 2025.

Radar
Evaluation of Swisscom's Ownership Strategy

Swiss Economics conducted a study on the federal government's ownership strategy regarding Swisscom on behalf of DETEC and the FDF.

 

Our report concludes that, at present, there is no sufficiently strong public interest in a federal majority stake in Swisscom—neither to ensure the provision of basic telecommunications services nor to expand a nationwide high-speed broadband network. These services are primarily provided in a competitive market or can be adequately regulated by the federal government through legislation. However, given the reassessment of the security implications of telecommunications and information infrastructure, there may be a public interest in federal government ownership of a stake in Swisscom. Since legislation and commercial contracts can only partially regulate the provision of the necessary services, having ultimate control through ownership in this sensitive sector may be advisable.

However, government activity in competitive markets generally leads to distortions of competition. Even a strict separation of the ownership role from supervisory and regulatory functions cannot fully resolve the fundamental conflict of objectives between the economic interest in effective competition and the fiscal interest in dividend income. The balance between the public interest in a majority stake and competitive neutrality is ultimately a political question that this report cannot definitively answer. With regard to the formulation of strategic objectives, we recommend explicitly mentioning the public interest in Swisscom’s security policy responsibilities.

In addition to a majority stake and a complete sale, we also examined alternative courses of action, such as the establishment of a state-owned network company or the retention of a blocking minority. However, no additional benefits were identified.

The evaluation was conducted in collaboration with Martina Arioli and Lukas Bruhin of Arioli Law.

 

Michael Funk, Urs Trinkner, Lukas Bruhin, Martina Arioli, Nicolas Oderbolz, Nina Schnyder

 

View the report (German)

To the Federal Council’s press release

 

Welcome Dr. Marco Salvi and Bastian Seiler

We are delighted to welcome Dr Marco Salvi and Bastian Seiler as new members of staff. They will strengthen the Swiss Economics team in the area of economic policy and energy.

Bastian Seiler joins the Swiss Economics team as Senior Economist. He studied political science, economics and economic and social history at the University of Zurich. After his studies, he gained over 10 years of professional experience in different roles across the energy and infrastructure industry. At Swiss Economics, he will primarily work as a consultant and project manager in the areas of energy, finance and insurance, as well as regulation and risk management.  

Dr. Marco Salvi joins Swiss Economics as Managing Economist. He holds a PhD from EPFL and brings over 10 years of experience in economic policy analysis. As a Senior Fellow at Avenir Suisse, he was responsible for labor market, social, and housing policy and played a key role in shaping the think tank’s strategic direction. Previously, he served as a project leader focusing on tax and fiscal policy. Before joining Avenir Suisse in 2011, he led three specialist teams at Zürcher Kantonalbank, where he developed innovative risk models for the real estate and mortgage markets. He is an Adjunct Fellow at Avenir Suisse and lectures on Real Estate Finance at the University of Zurich. 

At Swiss Economics, he will be responsible for topics such as real estate economics, regional economics, and labor market issues.

Economic Evaluation of temporary agency work

Swiss Economics examined the role of temporary work from an economic perspective and assessed the potential impact of current regulatory proposals on the labor market for swissstaffing.

Several proposals for additional regulation of temporary agency work are currently under discussion. Our study, conducted on behalf of swissstaffing, concludes that these proposals do not bring any added value. The analysis, which was carried out using the regulatory impact assessment (RIA) method, shows that temporary work plays an important role in the labour market. It reduces market frictions and enables efficient and rapid placement between companies and employees.

Temporary agency work thus provides flexibility, but at the same time is in tension with employment security. Without temporary agency work, an increase in less regulated forms of work such as temporary employment, self-employment or on-demand work could be expected. Unemployment and undeclared work could also increase. Moreover, temporary agency workers in Switzerland already benefit from comprehensive protection through a collective labour agreement.

The study can be downloaded in German or French.

Successful support for the UBS and CS merger

Swiss Economics supported UBS in its merger with CS in the FINMA control procedure.

On June 19, 2024, the Swiss Financial Market Supervisory Authority FINMA announced that it had concluded the antitrust review procedure for the merger between UBS and Credit Suisse without imposing any conditions or obligations. Following an extensive review, it concluded that the merger would not eliminate effective competition in any market segment.

Swiss Economics supported UBS in these proceedings with two economic expert opinions and the compilation of market data. The first report contained a comprehensive analysis of the competitive situation on all relevant banking markets. The second report provided a more in-depth analysis of individual segments that were the focus of the Competition Commission's statement to FINMA. The Swiss Economics team, consisting of Dr. Michael Funk, Dr. Samuel Rutz, Dr. Eva Zuberbühler and Seline Spillmann, worked closely with the antitrust team of Bär & Karrer, represented by Dr. Mani Reinert and Dr. Christine Schweikard.

Press release and FINMA ruling.

Housing policy in the spotlight

Supporting low-income households directly or providing subsidized housing? Swiss Economics analyses the affordability of housing costs and housing policy instruments to relieve the burden on households in Switzerland.

Our latest study, which we carried out on behalf of the Verband Immobilien Schweiz (VIS), shows which households may have financial problems with housing costs. The salient features of these households are:

single - settled in a moderately populated region - tend to consume a lot of living space per person - low-income.

In order to relieve the burden on households, the state has two social policy instruments at its disposal: supply-side and demand-side subsidies. The former subsidises housing directly, while the latter supports households with housing allowances. Supply-side subsidy is mainly realised through the housing stock of cities and municipalities, while demand-side subsidy support is primarily provided via social welfare and AHV/IV supplementary benefits. Our calculations show that the public sector currently spends roughly the same amount per supported household on subsidised housing as on housing allowances: on average around CHF 5,000 per year. However, housing allowances are more targeted, as it almost exclusively benefits households in need.

Based on the demand-side subsidy systems currently in place in Switzerland, we estimate the costs of extending these systems to all overburdened households. This shows that in an expanded system of demand-side support, around 50 per cent more low-income households could be supported with the funds currently used for supply-side support than is currently the case.