Collusion in Brand Search Advertising: Nearly All Swiss Casinos Under Investigation

Switzerland’s Competition Commission (WEKO) has opened an investigation into nearly all online casinos in the country over suspected collusion in search advertising, the regulator said in a statement on April 30.

The probe follows several complaints filed with WEKO by gambling industry participants. The regulator believes operators may have agreed not to compete for ad placements tied to searches for competitors’ brand names.

In this model, companies pay to display ads against specific user search terms, including the names of rival brands.

As a result, users searching for a specific casino may also be shown offers from competing operators.

WEKO suspects that online casinos may have agreed not to place ads on queries related to competitors’ brands and to avoid advertising to users already looking for a specific operator.

In a typical market, companies compete for such queries by advertising on rival brand names. This increases competition for the same users and drives up advertising costs. A coordinated decision to avoid this practice would reduce competition and could lower marketing expenses.

According to WEKO, such arrangements may harm consumers by limiting the range of alternative offers shown. The conduct could therefore constitute an unlawful agreement restricting competition.

The investigation covers nearly all online casinos in Switzerland. Official data shows there are 11 such operators in the country, and only holders of land-based casino licences are allowed to run online platforms.

Gambling Park previously reported that Sportradar had been accused of violating antitrust laws in the United States and the United Kingdom.