Setterwalls has successfully represented Strömstads Badanstalt in the Market Court

Strömstads Badanstalt may continue its fitness and spa activities. Setterwalls has represented the municipal company Strömstads Badanstalt in a case against the Competition Authority concerning a municipal operator’s right to compete with private operators.

In addition to its bath,sten the company operates a gym and spa. The Market Court, which is the highest court for this type of case, considered, contrary to the Competition Authority’s opinion, that the Competition Authority’s investigation did not show that the presence of Strömstads Badanstalts’ gym operations on the market meant that competition was distorted, restricted or is likely to be restricted or distorted. The case is important as it gives guidance on the Competition Authority’s burden of proof and it shows above all that in those cases where there are examples of effective competition and the counterparty can produce such evidence – in this case there were examples of competing, successful gyms and applications for new establishments – it becomes difficult for the Competition Authority to gain success against a municipal company’s sales operations.