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EC calls off Qualcomm royalty probe
25 November 2009
Europe has dropped its inquiry into Qualcomm after the US company has settled independently with Nokia and Broadcom
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[Qualcomm]
[Nokia]
[Broadcom]
[3G]
[EU]
[patents]
[Texas Instruments]
[Ericsson]
[NEC]
Comment: Qualcomm has pointed out that, in October 2005, when the complaint was issued, there were fewer than 50 different 3G models from only a dozen vendors in Europe and now that figure is nearer 500 different 3G models from almost 30 vendors.
The European Commission has called off a four-year inquiry into patent royalty rates charged by Qualcomm.
The enquiry was dropped after two companies, Nokia and Broadcom, withdrew their objections and agreed to direct settlements with the chipmaker.
The 27-nation European Union investigation began after a complaint filed by Nokia, Broadcom, Texas Instruments, Ericsson, NEC and Panasonic. The complaint claimed Qualcomm had refused to license patents to competitors “on fair, reasonable and non-discriminatory terms”.
The companies alleged that Qualcomm offered lower royalty rates to handset customers which bought chipsets exclusively from it.
Andrew Gilbert, executive vice president of the group and president of Qualcomm Europe, said: “We are delighted with the decision to drop the case. Common sense has prevailed.”
In 2009, the remaining complainants won favourable verdicts from the Japanese and South Korean competition authorities. Seoul imposed a fine of just over $200 million on San Diego-based Qualcomm. GTB