The Swedish Competition Authority gains unprecedented powers

Today, the Swedish Parliament adopted a significant package of competition law reforms aimed at strengthening competition in both the private and public sectors. The new rules, which will enter into force already on 1 August 2026, introduce three major changes to Swedish competition law: a new competition tool for market investigations, a new act governing public commercial activities, and revised merger control rules.

Together, the reforms represent one of the most substantial overhauls of Swedish competition law in recent years and signal a clear political ambition to strengthen oversight of markets where competition is considered to function insufficiently. Public actors engaging in commercial activities, in particular, should take note of the increased focus on competitive neutrality and the strengthened enforcement tools now being introduced. The new rules will enter into force already on 1 August 2026.

The new competition tool

The first reform is the introduction of a new competition tool that will enable the Swedish Competition Authority to intervene in markets where competition is deemed to function poorly, even in the absence of a specific infringement of competition law. Inspired by similar regimes in other jurisdictions, the tool will allow the authority to conduct market investigations and impose remedies designed to improve market functioning. This marks a notable shift from the traditional enforcement model, which has primarily focused on anti-competitive agreements and abuses of dominance.

A new act governing public commercial activities

The second reform is a new act on public commercial activities. The legislation is intended to address longstanding concerns that public entities may distort competition when engaging in commercial activities alongside private operators. The new framework introduces clearer rules and more effective enforcement mechanisms aimed at ensuring competitive neutrality between public and private actors.

The reform also sends a clear signal that public actors engaging in commercial activities must carefully assess whether their conduct is compatible with the new rules. Municipalities, regions and state entities will need to ensure that commercial operations are structured and conducted in a manner that does not risk distorting competition or crowding out private businesses. Given the strengthened enforcement powers and increased scrutiny that are likely to follow, compliance considerations will become increasingly important for public entities active in competitive markets. This also opens up avenues for companies to file complaints with the Swedish Competition Authority, which has been granted new powers to prohibit certain business activities and types of conduct, as well as to impose fines.

Revised merger control rules

Finally, the Parliament adopted revised merger control rules aimed at strengthening the Swedish Competition Authority’s ability to review potentially harmful concentrations. The new rules will allow the Authority to intervene in mergers affecting local markets, even where competition concerns do not extend to a substantial part of Sweden. The reforms also introduce the possibility to impose reporting obligations on certain undertakings for future acquisitions and extend the review periods for more complex merger investigations and court proceedings.

Taken together, these three reforms significantly enhance the Swedish Competition Authority’s toolkit and align Sweden more closely with broader European trends toward more interventionist competition enforcement and increased scrutiny of market structures. As regards call-in powers, which are sought after in many countries, these have already been in place for a considerable time and are used by the Swedish Competition Authority in relation to both horizontal and vertical mergers.

For a more detailed analysis of the reforms, please see our earlier blog posts on:

• the new act on public commercial activities
• the new competition tool
• the revised merger control rules

These posts provide a closer look at the background, scope and practical implications of the legislation.