ComCo sees indications of a dominant market position on the part of UBS
Published: Wednesday, Jun 19th 2024, 09:40
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The Competition Commission (ComCo) sees indications of a dominant market position on the part of UBS as a result of the CS takeover. It is also insisting that fees and prices of the merged banking group be closely monitored in future. However, FINMA has the say in this case and is not imposing any conditions under competition law.
The Competition Commission recommends that the Financial Market Supervisory Authority FINMA and the Swiss National Bank (SNB) review the prices and fees of the operators of financial market infrastructures for distortions of competition that could arise as a result of the merger, according to the report published by the competition authority on Wednesday. And if necessary, the authorities should enforce adjustments.
In addition, prices and the development of fees should be monitored more closely. The authorities should intervene against adjustments that could further strengthen the position of the new UBS. And the price watchdog should be informed of any adjustments.
In the view of the ComCo, the indications that a dominant position of the combined bank was established or strengthened in certain markets have been confirmed. The ComCo mentions the following areas: passive asset management and fund business, global custody and the Swiss real estate asset class, as well as corporate banking for large companies and companies with specific needs.
In the emergency takeover of what was once Switzerland's second-largest bank by UBS, the Swiss competition authorities' right to have a say was ruled out. In cases where financial stability is at stake, Finma may approve a merger without a review by the ComCo.
Nevertheless, the ComCo then held hearings on the takeover and submitted its recommendation to FINMA last September. However, as Finma announced on Wednesday (today), it is waiving any conditions for UBS or further examinations.
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