Telecommunications - Switzerland

In a press release of November 5 2009, the Competition Commission published its finding that Swisscom had set its asymmetric digital subscriber line (ADSL) wholesale prices at an excessive level, resulting in a price margin squeeze. The commission found that through this abusive pricing, Swisscom had restrained its competitors because they could not profitably operate their own ADSL businesses. As such, the commission found Swisscom's pricing to be an abuse of its dominant market position.

In January 2008 Swisscom reduced its wholesale prices for ADSL. Since then, the situation for other ADSL providers has improved.

Swisscom has announced that it will challenge the decision.

This is not the first time that the commission has issued a substantial fine against Swisscom. In 2007 the commission fined it over Sfr333 million for the abusive pricing of mobile termination charges – a decision which Swisscom appealed. Since no final decision has yet been rendered by the Swiss Federal Supreme Court regarding abusive pricing of mobile termination charges, no decision on the latest fine imposed against Swisscom can be expected at any time soon.

For further information on this topic please contact David F Känzig at Thouvenin Rechtsanwälte by telephone (+41 44 421 45 45), fax (+41 44 421 45 00) or email (d.kaenzig@thouvenin.com).