Facts
On May 2, 2010, the Landsgemeinde (cantonal assembly) of the Canton of Glarus enacted a new law on the Cantonal Property Insurance Glarus (SachVG), which granted the company the possibility to offer additional insurance products in competition with private insurance companies, in addition to its monopoly area.
The Swiss Insurance Association and several private insurance companies filed a complaint against these provisions, arguing that they violate economic freedom and other federal laws.
Considerations
The Federal Supreme Court dismissed the complaint. It stated that commercial activity by the state is generally permissible, provided that there is a formal legal basis, the activity is in the public interest and proportionate, and the principle of competitive neutrality is observed.
The contested law fulfills these requirements. The Canton of Glarus had aimed to better distribute the risks and costs by expanding the business activities of the Glarnersach, which is a legitimate…