Damage assessment for Sunrise
What are the damages resulting from a margin squeeze (abuse of a dominant position)?
Sunrise
Project period2018 – 2019
Related expertiseCompetition Economics, Litigation and Arbitration, Data Science
TeamChristian Jaag, Michael Funk, Matthias Hafner, David Jeandupeux
ContactProject description
After ten years of appeals, on 9 December 2019 the Federal Supreme Court found that Swisscom abused its dominant market position from 2001 to 2007 and unlawfully impeded competition through its pricing policy for ADSL services. Swisscom practised a margin squeeze which made it impossible for Sunrise, as a wholesale customer, to operate the ADSL business profitably. Swisscom was therefore sentenced to pay a fine of CHF 186 million.
Sunrise has commissioned Swiss Economics to calculate the loss suffered by Sunrise. The loss results from a loss of market share and prevented gains in the broadband Internet market and neighbouring markets (fixed-line telephony and mobile telephony markets). The loss totals CHF 457 million and is therefore greater than originally assumed.
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