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WEKO vs. Microsoft – Competition Protection, Politics and the Question of Digital Sovereignty

Blog (EN) pending

On January 15, 2026, the secretariat of the Swiss Competition Commission (WEKO) announced a preliminary investigation due to significant price increases for Microsoft 365. Swiss companies and public institutions have been reporting price increases and more complex licensing models for months. WEKO is now examining whether a possible dominant market position is being abused. WEKO Press Release

However, this process raises deeper questions: How independent is WEKO? Does it possess sufficient competencies to effectively proceed against global IT corporations? And what strategic alternatives does Switzerland have to reduce its digital dependence?

A critical look – from a liberal perspective.

Who is WEKO – and what is their mandate?

The Competition Commission (WEKO) is the central authority for enforcing Swiss cartel law. Their mandate includes:

  • monitoring and investigating competition violations
  • assessing dominant market positions
  • controlling mergers and cooperations
  • providing recommendations to authorities and legislators

WEKO consists of a militia-like commission and a professional secretariat that conducts investigations. Formally, it is independent, but administratively it is affiliated with the Department of Economic Affairs, Education and Research (EAER).

Critical point:
The commission is appointed politically – thus independence in terms of professional control may be given, but political influence remains structurally possible.

Political influence – subtle, but real

Although WEKO is formally autonomous, political influence remains a real factor:

  • Members are appointed by the Federal Council.
  • The commission also includes representatives from associations and interest groups.
  • Economic lobbies exert indirect influence through the composition of the bodies.
  • Parliamentary initiatives and revisions of cartel law put WEKO under political pressure of expectations.

Liberal question:
Can an institution whose leadership is politically determined actually judge independently over powerful international corporations?

Does WEKO have the competence to take action against Microsoft?

The crucial question is whether WEKO has sufficient instruments to actually have an impact in a globally dominated IT market.

Legal situation – Strengths

  • It can open preliminary investigations and examinations.
  • It can impose sanctions if violations are provable.
  • It can formulate conditions and demand transparency.

Practical limitations

  • Digital markets are cross-border, while WEKO operates nationally.
  • Companies like Microsoft can globally control adjustments to their pricing models.
  • Proving abuse of power in the digital sector is technically and legally complex.
  • Procedures often take years – but in the IT industry, markets change monthly.

Conclusion:
Legally competent yes, practically limited.

Public sector: The dependence is structural

Federal, cantonal and municipal governments predominantly rely on proprietary IT solutions. This degree of concentration leads to:

  • high switching costs
  • structural dependence on licensing models
  • limited data sovereignty
  • low technological diversity

Here, WEKO could intervene symptomatically, but the fundamental problem is of a political-strategic nature, not competition policy-related.

Open-source alternatives – without naming products

Instead of listing individual products, it is more sensible to emphasize the principles that make open-source approaches attractive in the public sector.

1. Independence from individual providers

Open-source solutions avoid dependence on proprietary licensing models and reduce the risk of price increases or sudden business model changes.

2. Transparency and security

The publicly accessible source code enables independent security reviews, audits and adaptations – an advantage with sensitive government data.

3. Interoperability and open standards

Open protocols and open file formats prevent technological lock-ins and facilitate cooperation between authorities and service providers.

4. Local value creation

Instead of paying license fees abroad, local IT service providers are strengthened, who can take over maintenance, support and further development.

5. Scalability and adaptability

Open-source software can be adapted for specific requirements of Swiss administration – without dependence on global roadmaps.

Is WEKO responsible for digital sovereignty?

No – but it plays an indirect role.

WEKO should correct market power, not shape technology policy.
Digital sovereignty is a political-strategic goal that must be shaped through:

  • Federal IT strategy
  • Procurement guidelines
  • Education policy
  • Cybersecurity standards

WEKO can only react, not shape.

Conclusion – what is really needed

The investigation against Microsoft is an important signal. It shows that the state is not left alone when a provider exploits its market power.

But:

  • WEKO has limited means to solve structural dependencies.
  • Political will is necessary to strengthen open-source approaches in the public sector.
  • Switzerland needs strategic IT independence, not just antitrust interventions.

From a liberal perspective, this means:
More competition through open standards, transparent technologies and real freedom of choice – instead of monoculture through proprietary systems.

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