Swisscom faces complaint over internet pricing

13 Nov 2008

Swisscom, the country’s largest telecoms provider, is facing accusations of abusing its dominant market position in the supply of broadband services. The company said it had been notified that the Competition Commission (ComCom) had received an application to sanction it with CHF237 million (USD198 million) in penalties for allegedly overpricing ADSL set-up services. The Commission has asked Swisscom to respond. In its application to issue sanctions, the Secretariat of the Competition Commission wrote there was too narrow a margin between the price at which Swisscom rented out its network to other providers and the end bills for customers. The high network rental price also resulted in elevated broadband prices in Switzerland, it argued. In a statement, Swisscom rejected the allegations and said it regarded the sanctions as unjustified. ‘More than 80% of households in Switzerland have the choice between cable internet and ADSL. Some smaller cable network operators have higher market shares in their local markets than Swisscom,’ it said

Switzerland, Swisscom