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Is it always forbidden to overtake at the crest of a hill?
“In places where visibility is limited at the crest of a hill or in a curve, overtaking may only take place if the road has at least two lanes in your direction in which there may be no oncoming traffic, or in other cases where the overtaking can be completed without using a lane intended for oncoming vehicles. However, two-wheeled vehicles without a sidecar may be overtaken.” (Swedish Road Traffic Ordinance)
This means, for example, that you are allowed to overtake as long as you do not turn into the oncoming lane. In other words, it is not always forbidden to overtake as per the question's wording.
How can this be permitted?
– The number one priority is safety, but practical considerations must also be made. Compare with speed limits: it would be safest if the speed limit on all roads was 10 km/h, but it would not be practical.
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