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Statement by Jonathan Todd, spokesperson of Neelie Kroes, on the formal proceedings against Qualcomm

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The European Commission has decided to open formal anti-trust proceedings against Qualcomm Incorporated, an American chipset manufacturer, concerning an alleged breach of EC Treaty rules on abuse of a dominant market position (Article 82). Qualcomm is a holder of intellectual property rights in the CDMA and WCDMA standards for mobile telephone. The WCDMA standard forms part of the third generation standard for European mobile phone technology (also referred to as "UMTS"). This follows complaints lodged with the Commission by Ericsson, Nokia, Texas Instruments, Broadcom, NEC and Panasonic, all mobile phone and/or chipsets manufacturers. The complaints allege that Qualcomm's licensing terms and conditions are not Fair, Reasonable and Non-Discriminatory ("FRAND") and, therefore, may breach EC competition rules. This initiation of proceedings does not imply that the Commission has conclusive proof of an infringement. It only signifies that the Commission will conduct an in-depth investigation of the case as a matter of priority. There is no strict deadline for the Commission to complete inquiries into anticompetitive conduct. Their duration depends on a number of factors, including the complexity of each case, the extent to which the undertakings concerned co-operate with the Commission and the exercise of the rights of defence.
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Type: EbS   Reference: 53830   Date: 01/10/2007   Duration: 00:02:33
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