Ericsson facing CCI antitrust investigation over Micromax complaint

Advertisement
By Press Trust of India | Updated: 28 November 2013 11:51 IST
Fair trade watchdog CCI will probe telecom gear major Ericsson for alleged abuse of its dominant position in charging higher royalty on GSM technology patents, following a complaint by handset maker Micromax.

Competition Commission of India (CCI) has ordered investigation into the matter after finding prima-facie evidence of Telefonaktiebolaget LM Ericsson indulging in unfair trade practices.

Micromax had complained that Sweden-based Ericsson was demanding unfair, discriminatory and exorbitant royalty for its GSM technology-related patents.

In its order, CCI has said that it is a "fit case for through investigation by the Director General into the allegations made by the informant (Micromax), and violations, if any, of the provisions of the Competition Act".

Advertisement

It is prima facie apparent that Ericsson is dominant in the market of GSM and CDMA (telecom technology standards) in India and holds large number of such patents, said the CCI order dated November 12, but released Wednesday.

Advertisement

As per the order, Ericsson has 33,000 patents to its credit, with 400 of these granted in India. The company was the largest holder of SEPs (Standard Essential Patents) for mobile communications technologies like 2G as well as 3G and 4G, used mainly used for smart phones and tablets.

The Commission noted that since Ericsson held these SEPs and there was no other alternate technology in the market, the telecom equipment firm "enjoys complete dominance over its present and prospective licensees in the relevant product market".

Advertisement

Micromax said it had received a notice from Ericsson on November 3, 2009 for infringing essential GSM patents of the company.

The Commission observed that allegations regarding royalty rates make it clear that the practices adopted by the Ericsson were discriminatory as well as contrary to FRAND (Fair, Reasonable and Non-Discriminatory) terms.

Advertisement

"The royalty rates being charged by the Opposite Party (Ericsson) had no linkage to patented product, contrary to what is expected from a patent owner holding licences on FRAND terms.

"The Opposite Party seemed to be acting contrary to the FRAND terms by imposing royalties linked with cost of product of user for its patents," the order said.

Meanwhile, Ericsson had filed a civil suit against Micromax for alleged violation of patent rights.

The Commission said that issues raised by Ericsson before the Delhi High Court were in respect of infringement of Intellectual Property Rights (IPR).

"this Commission has obligation and jurisdiction to visit the issues of competition law. Pendency of a civil suit in High Court does not take away the jurisdiction of the Commission to proceed under the Competition Act," the order said.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Poco X8 Pro, Poco X8 Pro Max to Launch on This Date
  2. Red Magic Gaming Tablet 5 Pro Teased Ahead of Imminent Launch
  3. Tim Cook Reveals the Secret Behind Apple's Success, Says Can't Be Replicated
  4. Claude Finds 22 Vulnerabilities in Firefox in Just Two Weeks
  5. Vivo V70 FE Arrives With a 7,000mAh Battery: See Price, Specifications
  6. MacBook Neo vs MacBook Air (2025): Price in India and Features Compared
  7. OnePlus 15T Official Images Confirm 'Squircle' Camera, Two Colourways
  8. Samsung Galaxy M17e 5G India Launch Set for March 17: Features
  1. NASA’s Webb Telescope Confirms Asteroid 2024 YR4 Will Safely Pass the Moon in 2032
  2. ChatGPT Adult Mode Delayed Again as OpenAI's 'Code Red' Reportedly Ends
  3. Lava Bold 2 5G India Launch Date Announced; Confirmed to Feature Under-Display Fingerprint Scanner
  4. Realme Note 80 Launched With 6,300mAh Battery, 6.74-Inch Display: Price, Specifications
  5. Anthropic’s Claude Finds 22 Vulnerabilities in Mozilla Firefox in Just Two Weeks
  6. Samsung Galaxy Smartphones Get Inactivity Restart Security Feature With Latest Update: Report
  7. Poco C85x 5G Key Specifications, Features Revealed a Day Ahead of Launch in India
  8. Rooster Now Available for Streaming Online: What You Need to Know About its Plot, Cast, and More
  9. Bhartha Mahasayulaku Wignyapthi OTT Release Date Reportedly Revealed: When and Where to Watch Ravi Teja’s Romantic Drama Online?
  10. Ghost Elephants Out on OTT: Know Where to Watch This Biographical Film Online
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.