European Commission investigating Qualcomm case

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European Commission looks into Qualcomm case

The European Commission will expedite an investigation of charges against Qualcomm Inc. by six leading wireless companies that the chip and licensing company has violated antitrust rules.

The EC may dismiss the complaint if it finds no merit, it could settle the matter with Qualcomm or it could impose other sanctions.

Both sides said they “welcome” the investigation, signaling their confidence that their side will be vindicated.

The EC will look into the complaint by Nokia Corp., Ericsson Mobile Platforms, Broadcom Corp., NEC and Panasonic Mobile Communications that Qualcomm has violated European Union rules by charging disproportionate and discriminatory royalties for use of its W-CDMA patents and attempting to exclude competing vendors from the market, according to statement by those companies.

Qualcomm is “pleased” to “demonstrate that the complaints are without merit,” said President Steve Altman in a statement. The company “will continue to explain the undisputed fact that Qualcomm greatly contributed to the development and commercialization of W-CDMA technology” and abided by standards-setting rules.

The six companies’ original complaint was filed nearly two years ago and, according to CIBC analyst Ittai Kidron, the matter may take years to resolve.

A continuing “legal overhang,” in financial analysts’ parlance, is widely believed to be depressing Qualcomm’s stock price. Thus the EC investigation will be closely watched, as it is one forum among several—including the U.S. International Trade Commission and district courts in the U.S.—where Qualcomm faces similar complaints by, among others, Nokia and Broadcom. Whatever the outcome of the EC investigation, it may be in Qualcomm’s overall interests to see it resolved.

European Commission looks into Qualcomm case - RCR Wireless News