The Swedish Competition Authority (”SCA”) brought an action before the Stockholm City Court against the municipality of Växjö, seeking a prohibition regarding the use of a procedure that makes connection to the district heating system compulsory for new houses. The Swedish Competition Act prohibits a municipality from carrying out sales operations that limit competition in an unlawful way. The SCA claims that the municipality, when selling land to consumers, performs sales operations that hinder competition on the market and thus violate the Swedish Competition Act. According to the SCA, those who wish to purchase land in order to build a detached house should not be forced to connect to the municipal heating network. Currently the municipality's connection requirements lead to house owners being locked to one supplier and one type of energy. Their possibility to change heating systems later is also limited. The SCA thus demands that the actions undertaken by the municipality of Växjö should be prohibited on the condition of a fine of SEK 5.000,000. Source: The Swedish Competition Authority’s Press Release 19/6/2013