It emerged on Friday that Broadcom, Ericsson, NEC, Nokia, Panasonic Mobile
Communications and Texas Instruments have each filed complaints to the European
Commission requesting that it investigate and put an end to Qualcomm's allegedly
anti-competitive conduct in the licensing of essential patents for 3G mobile
technology.
The companies argue that Qualcomm is violating EU competition law and failing
to meet the commitments that it made to international standard bodies around
the world that it would license its technology on fair, reasonable and non-discriminatory
terms. The group went on to state that without this commitment, the WCDMA 3G
standard would not have been adopted.
According to the telecoms firms, Qualcomm is infringing these rules by:
- Trying to exclude competing manufacturers of chipsets for mobile phones
from the market and preventing others from entering, and
- Charging royalties for its WCDMA essential patents that are "excessive
and disproportionate".
The companies believe that Qualcomm's anti-competitive behaviour has harmful
effects for the mobile telecommunications sector in Europe, as well as elsewhere,
because carriers and consumers are facing higher prices and fewer choices.
Kasim Alfalahi, Vice President IPR Licensing and Patent Development at Ericsson
suggested that:
"Qualcomm committed to standard setting organizations that it would license
its technology on fair, reasonable and non-discriminatory terms. In spite of
this and in breach of competition law, Qualcomm is charging excessive and disproportionate
royalties. This means ultimately that consumers may have to pay more than they
should for their mobile handsets."