News
Sunrise sues Swisscom for damages following an abuse in the ADSL wholesale market
Extract from the press release:
Swisscom abused its dominant market position from 2001 to 2007, and unlawfully hindered the competition with its pricing policy for ADSL services. The former monopolist practised a margin squeeze which made it impossible for Sunrise as a wholesale customer, to operate its ADSL business profitably.
This was confirmed by the Federal Supreme Court on December 9, 2019 after a ten-year appeal process. Swisscom was sentenced to a fine of CHF 186 million.
On the basis of this ruling, Sunrise is claiming damages of CHF 350 million plus interest from Swisscom.
Sunrise commissioned the renowned consulting company Swiss Economics to calculate the damage to Sunrise. This is due to the loss of market share and prevented gain in the broadband Internet market and adjacent markets (landline and mobile communications). The total amounts to CHF 457 million, a greater number than originally assumed. As a precautionary measure to prevent limitation, Sunrise had interrupted the statute of limitation for a claim of CHF 350 million and is filing a claim for damages of CHF 350 million plus interest with the Bern Commercial Court today.
Our team includes Christian Jaag, Michael Funk and Matthias Hafner.
A new publication written by Swiss Economics.
The research article «Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare» by Swiss Economics and researchers from the University of Zurich shows how service providers exempted from the obligation to pay a value-added tax are favoured in competition. Further, this unequal treatment substantially affects outsourcing decisions and the labour market.
Helmut Dietl, Christian Jaag, Markus Lang, Martin Lutzenberger and Urs Trinkner (2011). «Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare». In Reinventing the Postal Sector in an Electronic Age. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 267-280.
Published in the same book: Maegli Martin, Christian Jaag, Martin Koller and Urs Trinkner (2011). «Postal Markets and Electronic Substitution: Implications for Regulatory Practices and Institutions in Europe». In Reinventing the Postal Sector in an Electronic Age. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 109-122.
An article by Christian Jaag and Urs Trinkner has been published in the Journal of Regulatory Economics.
The research article «The interaction between universal service costing and financing in the postal sector: a calibrated approach» by Christian Jaag and Urs Trinkner has been published in the Journal of Regulatory Economics.
Christian Jaag gave a presentation on «Yet another case of unintended consequences: VAT exemption and the public interest» at the DG MARKT economic seminar.
The presentation illustrates the distortive effects of VAT exemptions on competition in a newly liberalized industry and how they can be included in the calculation of the net cost of universal service obligations.
Swiss Economics presented the paper «An Economic Framework to Understand and Assess Regulations in Network Industries».
Swiss Economics presented the paper «An Economic Framework to Understand and Assess Regulations in Network Industries» at the 2010 Conference on Competition and Regulation in Network Industries.
In addition to a theoretical framework, he also presented two applications: Liberalization in network industries and the development of regulation in the postal sector.
Swiss Economics welcomes Oliver Fürst as a new staff member!
Oliver Fürst holds a Master of Arts in Economics and Business Administration from the University of Zurich. At Swiss Economics he works as a consultant for strategy and regulation in network industries.
Swiss Economics contributed three new research papers to the Conference on Trends and Innovation for the Postal Market.
Post Office Network Realignments and their Impact on Innovation
To the presentation
Postal Regulation, Declining Mail Volumes, and the Transformation of Business Models?
To the presentation
Postal markets and electronic substitution: What is the impact of intermodal competition on regulatory practices and institutions? The paper has received the «best paper award».
To the document
Swiss Economics contributed with three presentations to the 18th Conference on Postal and Delivery Economics.
- Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare
- Postal Markets and Electronic Substitution: What is the Impact of Convergence on Regulatory Practices and Institutions?
- Practical Approaches to USO Costing and Financing
At the «Second Annual Conference on Competition and Regulation in Network Industries» Christian Jaag has given a presentation on «Approaches to FTTH-Regulation: An International Comparison».
Christian Jaag gave a presentation on «Approaches to FTTH-Regulation: An International Comparison» at the 2nd Annual Conference on Competition and Regulation in Network Industries.
A presentation by Urs Trinkner.
At the «IPC Senior Executive Forum on Regulation» Urs Trinkner has given a presentation on «Shaping the USO? An Outline of Thought from an Economic Perspective».
A presentation by Christian Jaag.
At the 42nd Freiburger Verkehrsseminar, Christian Jaag gave a presentation on «Preisobergrenzen in liberalisierten Postmärkten» (in German).
A new publication written by Swiss Economics.
The research article «Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare» by Swiss Economics and researchers from the University of Zurich shows how service providers exempted from the obligation to pay a value-added tax are favoured in competition. Further, this unequal treatment substantially affects outsourcing decisions and the labour market.
Helmut Dietl, Christian Jaag, Markus Lang, Martin Lutzenberger and Urs Trinkner (2011). «Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare». In Reinventing the Postal Sector in an Electronic Age. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 267-280.
Published in the same book: Maegli Martin, Christian Jaag, Martin Koller and Urs Trinkner (2011). «Postal Markets and Electronic Substitution: Implications for Regulatory Practices and Institutions in Europe». In Reinventing the Postal Sector in an Electronic Age. Edited by M. Crew and P.R. Kleindorfer, Edward Elgar, pp. 109-122.
An article by Christian Jaag and Urs Trinkner has been published in the Journal of Regulatory Economics.
The research article «The interaction between universal service costing and financing in the postal sector: a calibrated approach» by Christian Jaag and Urs Trinkner has been published in the Journal of Regulatory Economics.
Christian Jaag gave a presentation on «Yet another case of unintended consequences: VAT exemption and the public interest» at the DG MARKT economic seminar.
The presentation illustrates the distortive effects of VAT exemptions on competition in a newly liberalized industry and how they can be included in the calculation of the net cost of universal service obligations.
Swiss Economics presented the paper «An Economic Framework to Understand and Assess Regulations in Network Industries».
Swiss Economics presented the paper «An Economic Framework to Understand and Assess Regulations in Network Industries» at the 2010 Conference on Competition and Regulation in Network Industries.
In addition to a theoretical framework, he also presented two applications: Liberalization in network industries and the development of regulation in the postal sector.
Swiss Economics welcomes Oliver Fürst as a new staff member!
Oliver Fürst holds a Master of Arts in Economics and Business Administration from the University of Zurich. At Swiss Economics he works as a consultant for strategy and regulation in network industries.
Swiss Economics contributed three new research papers to the Conference on Trends and Innovation for the Postal Market.
Post Office Network Realignments and their Impact on Innovation
To the presentation
Postal Regulation, Declining Mail Volumes, and the Transformation of Business Models?
To the presentation
Postal markets and electronic substitution: What is the impact of intermodal competition on regulatory practices and institutions? The paper has received the «best paper award».
To the document
Swiss Economics contributed with three presentations to the 18th Conference on Postal and Delivery Economics.
- Impact of VAT-Exemptions in the Postal Sector on Competition and Welfare
- Postal Markets and Electronic Substitution: What is the Impact of Convergence on Regulatory Practices and Institutions?
- Practical Approaches to USO Costing and Financing
At the «Second Annual Conference on Competition and Regulation in Network Industries» Christian Jaag has given a presentation on «Approaches to FTTH-Regulation: An International Comparison».
Christian Jaag gave a presentation on «Approaches to FTTH-Regulation: An International Comparison» at the 2nd Annual Conference on Competition and Regulation in Network Industries.
A presentation by Urs Trinkner.
At the «IPC Senior Executive Forum on Regulation» Urs Trinkner has given a presentation on «Shaping the USO? An Outline of Thought from an Economic Perspective».
A presentation by Christian Jaag.
At the 42nd Freiburger Verkehrsseminar, Christian Jaag gave a presentation on «Preisobergrenzen in liberalisierten Postmärkten» (in German).