In a September 21 2015 decision the Competition Commission imposed a fine of Sfr7,916,438 on Swisscom, Switzerland's leading telecommunications provider. According to the commission's press release,(1) Swisscom had a dominant position in the market for the provision of broadband connections to business customers, which it abused when bidding to supply broadband connections to the postal service.
The bidding contest to supply broadband connections to the postal service dated back to 2008. The commission stated that in its offer, Swisscom had charged such high wholesale broadband prices that rivals could not compete with its bid, which was 30% cheaper than its rivals. According to the commission, Swisscom had also forced the postal service to pay inflated prices.
The investigation opened on July 18 2013 following a complaint from a telecommunications service provider.
The commission's decision has been challenged before the Federal Administrative Court.
For further information on this topic please contact Pascal G Favre at CMS von Erlach Poncet Ltd's Geneva office by telephone (+41 22 311 00 10) or email ([email protected]). Alternatively, contact Patrick Sommer at CMS von Erlach Poncet Ltd's Zurich office by telephone (+41 44 285 11 11) or email ([email protected]). The CMS von Erlach Poncet Ltd website can be accessed at www.cms-vep.com.
Endnotes
(1) A version in German or French is available at www.news.admin.ch/message/index.html?lang=fr&msg-id=59555.
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