Weko investigates live sports on pay TV

The Weko's secretariat found evidence that Cinetrade and Swisscom are dominant in the broadcasting of live sports on pay TV and are abusing this position, according to a Weko statement on Thursday. The Weko's investigation focuses on whether Cinetrade is unjustifiably denying certain offers to competing TV platform providers of Swisscom TV.

Another issue is whether Cinetrade is discriminating against certain TV platform providers and end customers in that the Teleclub offering can be obtained more cheaply via Swisscom TV than via other TV platforms, even though the sports offering on Swisscom TV is more extensive. Finally, it must be clarified whether tying is inadmissible under antitrust law if end customers can only obtain Teleclub's sports channels together with a basic package, according to the statement.

Cinetrade holds long-term and comprehensive exclusive rights to broadcast sports content on Swiss pay-TV. Such exclusive rights can create a dominant market position that could potentially be abused in Swisscom's favor. As a result, Swisscom's competitors could be hindered in their competitive activities.

Cable network operators welcome decision

Swisscable welcomes the Weko's decision. The sports content must now be made available to a broad public quickly, according to the statement. Until now, only Swisscom TV subscribers could receive the full range of Swiss football and ice hockey matches and other sporting events. Cable TV subscribers are denied this access. The reason: Cinetrade/Teleclub, in which Swisscom holds a significant stake, refuses to provide Swiss cable networks with a sports offering comparable to Swisscom TV, even though this could massively expand the circle of potential customers. "Obviously, Swisscom's influence is so great that it can prohibit Cinetrade/Teleclub from offering football and ice hockey games to cable network customers as well, against all economic reason," comments Swisscable president Filippo Leutenegger. "This monopolization of sports content by Teleclub is unacceptable and unfair. Obviously, Swisscom is not looking for competition, but to maintain its market power."

UPC Cablecom and other cable networks are being fobbed off with a minimal offering that includes only a fraction of all Teleclub sports channels and is significantly less attractive to consumers, criticized the largest cable network operator, according to SDA. For his part, UPC Cablecom CEO Eric Tveter complained that Teleclub was systematically sealing off the market: "Teleclub's motivation cannot be explained in economic terms."