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Federal Supreme Court confirms fine imposed on Swisscom

Misc News - Published on Mon, 23 Dec 2019

Image Source: Federal Supreme Court Switzerland
In its ruling published last week, the Federal Supreme Court rejected Swisscom’s appeal against the ruling of the Federal Administrative Court of 14 September 2015 concerning improper pricing and confirmed the cartel fine of CHF 186 million imposed on Swisscom by the Federal Administrative Court. The ruling related to ADSL prices up to the end of 2007. Swisscom regrets the Federal Supreme Court’s decision and believes that the sanction is unjustified:

Swisscom did not hold a market-dominant position, as competition and price pressure on the part of cable networks already existed at the time of the investigation.

The Swisscom offering enabled its competitors to market their own broadband Internet services from the outset. Swisscom continually improved this service in terms of price and bandwidth, meaning it could not constitute a means of obstructing competitors;

The investigation relates to the first few years following the launch of ADSL and the initial losses, criticised by COMCO, in the broadband business as a result of new customer acquisitions were common during this period and are not open to challenge.

Swisscom’s end customer broadband Internet business and that of efficient competitors is profitable over the long term and a structural deficit or margin squeeze can therefore not exist.

The Federal Supreme Court confirmed the allegation that Swisscom had charged its competitors improper prices for its Broadband Connectivity Service up to 31 December 2007.

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Posted By : TelecomGuru on Mon, 23 Dec 2019
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