Qualcomm accused of distorting 3G market

October 28, 2005

Some of the world's leading wireless companies Friday called on the European Commission to investigate Qualcomm's anti-competitive conduct.

Ericsson, NEC, Nokia, Panasonic Mobile Communications, Broadcom and Texas Instruments have each filed complaints with European authorities to investigate what they allege as anti-competitive practices by Qualcomm in licensing third-generation mobile technology.

The companies argued that Qualcomm is violating the competition law of the European Union by refusing to license "essential patents to potential chipset competitors on fair, reasonable, and non-discriminatory terms to offering lower royalty rates to handset customers who buy chipsets exclusively from Qualcomm," according to a news release by Ericsson.

In addition to other allegedly illegal conducts, San Diego, Calif.-based Qualcomm's acts have had "harmful effects for the mobile telecommunications sector in Europe, as well as elsewhere, because carriers and consumers are facing higher prices and fewer choices," Ericsson stated.

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