In the wake of its much-awaited decision in the Gaba case, [1] the Swiss Federal Tribunal – the highest Court in Switzerland – handed down its BMW judgment. [2] Both cases concern vertical restraints (absolute territorial protection) and put an end to an issue that has been widely debated, namely whether hardcore restrictions falling under the presumption of elimination of competition set out in LCart/KG, Article 5(4), [3] are prohibited without the need to demonstrate that they actually have a significant negative impact on the market, and provided they are not justified on legitimate grounds. In Gaba and BMW, the Federal Tribunal has replied in the affirmative and, thus, adopted quite a formal approach towards restrictions leading to the insulation of the Swiss market. Furthermore,
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The Swiss Federal Tribunal renders a judgement taking a hard line on vertical restraints (BMW)
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