The Competition Commission is examining the merger of Sunrise and UPC in greater depth
The Competition Commission (WEKO) is conducting an in-depth investigation into the takeover of UPC by Sunrise. Initial investigations have revealed indications that the merger will create or strengthen a dominant position in various markets.
Sunrise and UPC are two of the largest telecommunications providers in Switzerland. Historically, Sunrise is a mobile network operator and UPC is a cable network operator. With the acquisition of UPC, Sunrise is acquiring its own cable network. As a result, Sunrise intends to offer fixed-line, broadband Internet and mobile services as well as digital television on its own infrastructure in Switzerland. The acquisition is intended to achieve greater independence from Swisscom and realize revenue and cost synergies.
The preliminary investigation by the Competition Commission has shown that there are indications of a single market dominant position, according to a statement on Monday. This is the case in the markets for the provision of sports broadcasting rights in pay TV and in the markets for IP interconnection access to end customers of Sunrise and UPC. Furthermore, according to the Competition Commission, there are indications of the creation or strengthening of collective market dominance together with Swisscom on the retail markets for broadband Internet, the retail markets for fixed-line telephony, the platform markets for the transmission of linear digital TV and in the regional platform market (UPC's network) for the transmission of video on demand.
For these reasons, the Competition Commission is conducting an in-depth examination of how the planned merger would affect competition. The examination must be carried out within the statutory period of four months.
