Swisscom did not abuse dominant position

21 Apr 2011

The Swiss Federal Supreme Court has published its ruling on the sanction proceedings started by the Swiss cartel office Weko in respect of mobile termination rates (MTRs). Weko launched an investigation into the MTR charges of the three mobile operators Swisscom, Sunrise and Orange, and found that Swisscom holds a dominant position in the market and had abused this position by levying unreasonably high charges on other telecommunications providers between 1 April 2004 and 31 May 2005, and imposed a fine of CHF333 million (USD372 million) on Swisscom. However, the Federal Supreme Court has now upheld Swisscom’s appeal against the Federal Administrative Court’s finding that it holds a dominant position in the mobile termination market. In its ruling, the Court states that Swisscom did not act improperly when setting mobile termination charges and that there is no legal basis to conclude that the company occupies a dominant position in the market, and as a result, Swisscom will not have to pay the fine imposed by Weko.

Switzerland, Swisscom