8 Provisions and contingent liabilities
Provisions
In CHF million |
Dismantlement and restoration costs |
Regulatory and competition law proceedings |
Termination benefits |
Others |
Total |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2020 | 680 | 206 | 91 | 157 | 1,134 | |||||
| Additions to provisions | 7 | 6 | – | 21 | 34 | |||||
| Present-value adjustments | 21 | 31 | – | – | 52 | |||||
| Release of unused provisions | – | – | (1) | (3) | (4) | |||||
| Use of provisions | (4) | – | (14) | (15) | (33) | |||||
| Balance at 30 June 2020 | 704 | 243 | 76 | 160 | 1,183 | |||||
| Thereof current provisions | – | – | 72 | 78 | 150 | |||||
| Thereof non-current provisions | 704 | 243 | 4 | 82 | 1,033 |
In 2009, the Competition Commission (COMCO) imposed a fine of CHF 220 million on Swisscom for abuse of a market-dominant position in the area of ADSL services during the period through to 2007. Swisscom lodged an appeal against the fine before the Federal Administrative Court. In 2015, the Federal Administrative Court upheld the COMCO decision in principle, and reduced the fine imposed on Swisscom by COMCO from CHF 220 million to CHF 186 million. Swisscom believed the penalty to be unjustified and lodged an appeal to the Federal Supreme Court. In December 2019, the Federal Supreme Court dismissed Swisscom’s appeal in the last instance and confirmed the sanction of CHF 186 million. As a result of the legally binding determination of market abuse, civil law claims were filed by telecommunications service providers in the second quarter of 2020. Based on legal assessments, Swisscom set aside provisions for any civil claims in prior years. Due to a reassessment of the interest effects, present value adjustments of CHF 31 million were recognised on these provisions in the second quarter of 2020. Any payments to be made will depend upon the date on which legally binding decrees and decisions are issued, and could occur within five years.
Contingent liabilities for regulatory and competition law proceedings
With regard to the contingent liabilities reported in the 2019 consolidated financial statements in connection with antitrust proceedings, Swisscom is of the opinion that an outflow of resources is unlikely and, as before, has therefore not recognised any provisions for this in the consolidated financial statements as at 30 June 2020.