The Competition Commission of India (CCI) has started an investigation against Ericsson for alleged abuse of its dominant position in charging higher royalty on GSM technology patents. The probe follows a complaint filed by Indian manufacturer iBall, The Economic Times reports. iBall claims Ericsson demanded unfair and discriminatory royalty for its GSM technology-related patents.
The Competition Commission plans to complete the investigation in 60 days. The competition regulator has ordered an investigation into the matter after finding evidence that Ericsson adopted unfair trade practices. The CCI says Ericsson is dominant in the market of GSM and telecom technology standards in India and holds a large number of such patents. According to CCI data, 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 2G, 3G, 4G mobile communications technologies used for smartphones and tablets.
The CCI claims that that, since Ericsson held these SEPs and there was no other alternative technology on the market, the Swedish company had complete market dominance. The CCI also says that allegations regarding royalty rates make it clear that the practices adopted by Ericsson were discriminatory as well as contrary to fair, reasonable and non-discriminatory terms.
