Switzerland Probes Alleged Pacts to Avoid Keyword Bidding on Google and Bing

Investigation Targets Two Key Sectors

Switzerland’s competition authority, known as ComCo, has started two separate cases. One case looks at package holiday providers in the country. The other focuses on licensed online casinos.

Officials believe some firms may have agreed not to bid on rivals’ brand names. These names are used in search ads on Google, Bing, and similar sites. Such deals could reduce normal competition between companies.

How Keyword Bidding Affects Users

Keyword bidding helps companies appear higher in search results. This can bring more clicks and more sales in a short time. If firms avoid bidding against each other, users may see fewer options. It may become harder to compare prices and offers. Hence, regulators see a possible risk for users and fair markets.

Early signs suggest some firms avoided using rivals’ brand terms. This behavior appears planned, though details are still unclear.

Case Began After Market Signals

The case did not begin by chance — it followed reports from inside the market. Some companies contacted regulators about strange bidding patterns. These reports led ComCo to open formal checks. Subsequently, officials expanded the review to both sectors.

What Regulators are Checking

ComCo is now studying if these actions break competition rules. Officials say such behavior could harm users and limit fair choice. Key points include:

• Deals not to bid on competitor brand names

• Lower visibility for some offers in search results

• Possible effect on price comparison for users

Search Engines Part of The Review

Search engines are not accused of wrongdoing in this case. Still, they will be asked to share information. Officials want to understand how bidding systems were used. ComCo director Patrik Ducrey said it is too early to measure any money impact. Nevertheless, the review will look at possible effects.

A Long Process Ahead

The investigation may take one to two years to finish. During this time, officials will gather data and speak with companies. For now, many details remain unknown — and the outcome is not clear.

Still, the case shows a wider issue. Online search plays a key role in business today. When competition shifts quietly, regulators often step in.