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 | 1 | 36 | 44 | |||||
| Adjustments recognised under property, plant and equipment | 59 | – | – | – | 59 | |||||
| Present-value adjustments | 3 | 33 | – | – | 36 | |||||
| Release of unused provisions | – | – | (1) | (7) | (8) | |||||
| Use of provisions | (5) | (15) | (22) | (21) | (63) | |||||
| Balance at 30 September 2020 | 737 | 231 | 69 | 165 | 1,202 | |||||
| Thereof current provisions | – | – | 66 | 59 | 125 | |||||
| Thereof non-current provisions | 737 | 231 | 3 | 106 | 1,077 |
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 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 has recognised provisions for any civil claims in the past. Due to a reassessment of the time value of money, present value adjustments of CHF 31 million were recorded 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 probably occur within five years.
Contingent liabilities arising from competition law proceedings
On 25 August 2020, the Competition Commission launched an investigation against Swisscom into allegations that it abused its market-dominant position for broadband connections to interconnect company sites. On the basis of a legal opinion, Swisscom concludes that a cash outflow is not probable and has not recognised any provision in the consolidated financial statements at 30 September 2020 as a result.
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 September 2020.