Switzerland's Competition Commission has proposed a fine of CHF 143 million against Swisscom for alleged violations in the marketing of sports content over pay TV. According to the regulator, Swisscom and its Teleclub service occupy a dominant market position, particularly in broadcasting Swiss national football and ice hockey events and, where technically possible, should provide all TV platforms in Switzerland with equivalent Teleclub sports programming under non-discriminatory conditions. By not offering the content to other TV providers, they are abusing the dominant position. Swisscom denies the alleged competition violation and said it regards the sanction as unjustified.
Swisscom sad that it and the Cinetrade Group comply with the law in their marketing of sports programmes via pay TV. Sports broadcasts were previously a neglected segment in Switzerland, and the high levels of investment that Swisscom and Cinetrade have dedicated to making them attractive for pay TV justify an expanded sports offering via the Swisscom TV platform, the company said. Since entering the TV business in 2006, Swisscom has opened up fierce competition in the Swiss television market and has gradually put together a comprehensive package for live broadcasts of football and ice hockey league matches, it noted.
ComCo launched its investigation into the broadcasting of live sports on pay TV in April 2013. Swisscom said in a statement that it will examine the 170-page draft decision from the regulator and respond to the allegations within the requested deadline. The definitive decree from ComCo can be contested at the Federal Administrative Court and ultimately with the Federal Court if necessary, Swisscom noted.UPC Cablecom said it welcomes the draft decision as it confirms the provider’s opinion that sports programmes exclusively broadcast by Swisscom/Teleclub should be offered to all TV viewers in Switzerland in a non-discriminatory way. According to UPC Cablecom, consumers should not have to change broadband and TV provider only to watch the Teleclub sports content offered over the Swisscom telecoms infrastructure. UPC Cablecom hopes that ComCo takes a final decision on the case quickly.
