Qualcomm holds the intellectual property rights in the area of the CDMA and WCDMA standards
The European Commission (EC) today announced the opening of an in-depth investigation into the US chipset manufacturer Qualcomm to determine whether or not it is allegedly abusing its dominant position in the sector, contrary to EU competition rules.
Qualcomm holds the intellectual property rights in the field of CDMA and WCDMA standards that apply to mobile telephony, the Commission noted in a statement.
The investigation will be carried out following several complaints from mobile phone and chipset manufacturers Ericsson, Nokia, Texas Instruments, Broadcom, NEC and Panasonic, who consider that "Qualcomm's licensing terms and conditions are not fair, reasonable or non-discriminatory," FRAND.
The infringement allegation refers to the conditions under which Qualcomm distributes its patents based on the rules for the third generation of European mobile telecommunications technologies (UMTS).
According to the European Commission, the investigation will focus "essentially" on determining whether the licensing procedures and related fees imposed by Qualcomm are as the aforementioned companies allege.
Furthermore, the plaintiffs argued that billing for fees not linked to FRAND could entail "an increase in mobile phone prices for the consumer, a slower development of third-generation regulations and various negative effects, in terms of economic efficiency."
These effects would slow down the evolution of the standard, and according to the plaintiffs, such behavior could also have "negative consequences" for the adoption of future fourth-generation regulations.
The opening of the investigation, which does not adhere to precise deadlines, "does not mean that the Commission has conclusive evidence confirming the existence of an infringement," the statement notes.
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