29 Contingent liabilities and contingent assets
Regulatory and competition-law proceedings
In November 2015, in its investigation as to the invitation to tender for the corporate network of the Swiss Post in 2008, Weko reached the conclusion that Swisscom has a market-dominant position on the market for broadband access for large corporate clients. In this tender, Swisscom is accused of having set the wholesale prices charged to competitors at such a high level that the latter could not compete with the end-customer offer made by Swisscom. As a result of this unlawful conduct, Weko ruled a direct penalty of CHF 8 million. Swisscom has challenged the ruling in the Federal Administrative Court. From a current perspective, Swisscom considers the levying of sanctions in the court of last appeal as not probable and thus has established no provision in the consolidated financial statements as of and for the year ended 31 December 2016.
Contingent assets from litigation
In 2015, the Italian competition authorities (AGCM) found Telecom Italia guilty of unlawful conduct as a market-dominant company and imposed a penalty of EUR 104 million. Related to the same matter, Fastweb has claimed damages from Telecom Italia and initiated legal action in connection therewith. In the fourth quarter of 2015, Fastweb and Telecom Italia reached an out-of-court settlement which encompassed the contested receivables of both parties due from each other. In the second quarter of 2016, Telecom Italia made a payment of EUR 55 million (CHF 60 million). As at 31 December 2016, there continued to exist for Fastweb, as a result of the settlement, an uncertain receivable to which conditions are attached. Disclosure of the amount of the receivable is waived for contractual and procedural reasons.