Swisscom: Sanction largely upheld

In 2015, the Swiss Competition Commission sanctioned Swisscom with an amount of CHF 7.9 million for abusing its dominant market position in the context of a tender of the Swiss Post. The Federal Administrative Court essentially rejects the appeal against that ruling but reduces the amount to be paid to approximately CHF 7.4 million.

Symbolbild swisscom WEB
Photo: Keystone

In 2008, the Swiss Post issued an invitation tender for the installation and operation of a «Wide Area Network» (WAN) for its post office locations. Swisscom was awarded the contract. Sunrise claimed it was dependent on the provision of preliminaries by Swisscom in order to be able to connect post office locations. The high prices charged by Swisscom for those preliminaries made it impossible for Sunrise to submit a competitive tender.

In its judgment, the Federal Administrative Court held that Swisscom had imposed unreasonably high prices both on the Swiss Post and on Sunrise. For the post office locations which it could neither have covered with regulated products nor with its own, Sunrise was dependent on Swisscom's unreasonably expensive commercial preliminaries. Moreover, while preventing Sunrise from realising a margin, Swisscom abused its dominant market position by inflicting a margin squeeze. The sanction imposed is among other things aimed at absorbing the unlawfully realised profit of Swisscom.

In an earlier judgment (B-7633/2009 on «Swisscom’s ADSL price policy»), the Federal Administrative Court had already accused Swisscom of imposing a margin squeeze.

This judgment may be appealed to the Federal Supreme Court.

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