Swiss Probe into Keyword Bidding Pacts in Travel and Casino Sectors

Switzerland's competition commission, ComCo, is investigating potential anti-competitive agreements among travel companies and online casinos. These firms allegedly agreed not to bid against each other for search engine keywords, potentially harming consumer choice. The first inquiry targets Swiss package holiday companies, with a second focusing on most online casinos.

Switzerland's competition watchdog has launched an investigation into alleged anti-competitive practices among travel companies and online casinos. The probe, spearheaded by ComCo, centers on alleged pacts to avoid bidding against each other for keywords in auctions operated by major search engines like Google and Bing.

Keyword bidding is a crucial strategy for businesses aiming to enhance the online visibility of their products and services. The investigation stems from reports by businesses in the travel and casino sectors who claimed their competitors had stopped bidding on relevant keywords involving competitors' trademarks.

Such agreements, if proven, could unlawfully restrain competition and disadvantage consumers by limiting their ability to compare different service providers. Currently, three package holiday companies in Switzerland are under scrutiny, along with several online casinos. ComCo, led by Director Patrik Ducrey, indicated that search engines would be questioned though they are not part of the probe.