The antitrust investigation of Qualcomm has now been upgraded to a “formal investigation.â€
Mobile technology company Qualcomm is in trouble in Europe, becoming the target of an antritrust investigation by the European Commission. The investigation will center around the allegation that Qualcomm has overcharged manufacturers on licensing fees for patents itholds on the WCDMA system, which is a major component of UMTS, the 3G standard used by mobile carriers for broadband data services. A complaint regarding the issue was first filed againstQualcomm in 2005 by Ericsson, Texas Instruments, Panasonic, NEC, Broadcom and Nokia. A preliminary investigation by the EU followed, which has now beenupgraded to a formal investigation, although that doesn’t mean Qualcomm is guilty of any violation. The EU mandates that patent holders must keep to reasonable and non-discriminatory guidelinesin their licensing. Qualcomm seemed happy to see proceedings step up. “We are pleased that the Commission has decided to give the case priority status to move it forward swiftlyto resolution,” said Steve Altman, president of Qualcomm in a statement. “We welcome the continuation of our dialogue with the Commission in order to demonstrate that the complaints arewithout merit and are motivated by commercial considerations of the entrenched complainants who are trying to stifle the competition that Qualcomm brings to the market.”
