Swiss competition commission Weko said that it has started an in-depth investigation into the sale of Liberty Global unit UPC Switzerland to Sunrise. An initial review of the deal suggested that it can create or reinforce a dominant position in various markets.
Sunrise is a mobile network operator that will have its own cable network through the acquisition of UPC. Sunrise wants to provide fixed-network, broadband Internet and mobile services as well as digital television on its own infrastructure in Switzerland. Through the acquisition, it also wants to increase its independence from Swisscom.
A preliminary examination of Weko pointed to a potential dominant position in the market for the provision of sports rights on pay-TV and in the market for IP interconnection access to the end users of Sunrise and UPC. It also pointed at the creation or strengthening of collective dominance with Swisscom in the market of the broadband internet for end users, the fixed line telephony market, the market of the platforms for linear digital TV transmission and the regional market of the platforms (UPC network) for the broadcasting of video on-demand.
