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6 Contingent liabilities and contingent assets

Regulatory and competition-law proceedings

In April 2013, the Competition Commission opened an investigation under the Federal Cartel Act against Swisscom concerning the broadcasting of live sport on pay TV. In July 2015, the Secretariat of the Competition Commission submitted its draft decree to Swisscom. It proposed to the Competition Commission a sanction in the amount of CHF 143 million against Swisscom due to alleged prohibited marketing of sports content via pay TV. In May 2016, the Competition Commission decided on a penalty of CHF 72 million in the proceedings. Swisscom denies the allegations and believes that it acted lawfully in its marketing of sports content. Swisscom has appealed the decision to the Federal Administrative Court and it now believes that it is unlikely that a court of final appeal will levy sanctions. It has therefore still not recognised a provision in its consolidated financial statements as at 30 June 2016.

With regard to the other contingent liabilities reported in the consolidated financial statements 2015 in connection with regulatory and antitrust proceedings, Swisscom is of the opinion that an outflow of resources is unlikely and, as before, has therefore not recognised any provision for this in the consolidated financial statements as at 30 June 2016.

Contingent assets from litigation

In 2015, the Italian competition authorities (AGCOM) condemned Telecom Italia for 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 concluded an out-of-court settlement. The latter also encompasses additional contested receivables of both parties from each other. In the second quarter of 2016, Telecom Italia made a payment of EUR 55 million (CHF 60 million). As at 30 June 2016, there still resulted from the settlement for Fastweb an uncertain receivable to which conditions are attached. Disclosure of the amount of the receivable is waived for contractual and procedural reasons.