Swiss fine BMW for overseas purchase ban BMW has been fined SFr156m ($163m) by the Switzerland Competition Commission for imposing unfair restrictions on Swiss customers who try to buy models of the German luxury car group abroad. BMW said on Thursday it "categorically rejects" the charges and would appeal. The group said the accusation was "incomprehensible," adding "BMW does not perceive any violation of Swiss competition law." The probe followed complaints by Swiss consumers that they had been prevented from buying BMW cars, or Minis produced by the group's sister brand, from foreign dealers. The inquiry revealed a clause in BMW's dealer contracts in the European Economic Area (the EU plus some non-members) that forbade sales of new vehicles outside the region - thus including Switzerland. The fine was based on the German group's sales over the past three years of new cars in Switzerland, which have not been revealed. Switzerland's Competition Commission, prompted by consumer protection groups, has previously launched numerous similar probes into international companies. Swiss prices for many items are often much higher than just across the border in Germany, France or Italy, reflecting higher Swiss costs and, more controversially, the willingness of Swiss consumers to pay more. Such longstanding discrepancies, covering everything from basic household goods such as toothpaste to luxury vehicles, have become far more pronounced as the Swiss franc has soared. Last summer, the franc briefly touched near parity against the euro before the Swiss National Bank was forced to impose a floor of SFr1.20 against the common currency in September . "We had special indications about BMW, but it's also a signal to the whole sector," said Vincent Martenet, chairman of the Competition Commission. He said that, while the motor industry had attracted particular attention, the commission had examined allegedly restrictive trading practices and unfair pricing for many items, including toothpaste and cameras. Cross-border shopping has become a regular weekend feature in Switzerland, covering even the most mundane goods. Shopkeepers in Konstanz, the biggest German town neighbouring Switzerland, reckon up to 60 per cent of their Saturday business is with Swiss buyers. However, price distortions have caused consternation among some Swiss vendors of foreign goods - notably car dealers, especially near the border, who have seen sales plummet. The Competition Commission said BMW's contentious clause also includes a ban on sales to parallel importers. "The Swiss automobile market was not foreclosed by BMW, as proven by the fact that its direct imports to Switzerland are comparable with those of other manufacturers," the German group responded, adding that its dealer agreements complied with EU competition law. BMW has 30 days to appeal to Switzerland's Federal Administrative Court. If unsuccessful, the appeal can be taken one legal level further to the country's highest tribunal. Additional reporting by James Wilson in Frankfurt