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Companies Accuse Qualcomm of Unfair Competition

In the world of mobile communications technology, there is fierce competition among leading companies. Due to this competition, some companies may feel that getting the upper hand can be done by acting however they feel is necessary, even if it goes against the basic business rules. Many leading mobile companies are accusing Qualcomm of doing just that.

Broadcom , Ericsson, Panasonic Mobile Communications and Texas Instruments have filed complaints to the European Commission requesting it investigate and stop Qualcomm`s anti-competitive conduct in the licensing of essential patents for 3G mobile technology. The companies state Qualcomm is violating European Union competition law and failing to meet the commitments Qualcomm made to international standard bodies around the world that it would license its technology on fair, reasonable and non-discriminatory terms. Without these commitments, the WCDMA 3G standard would not have been enacted.

The companies believe Qualcomm`s anti-competitive behavior has harmful effects for the mobile telecommunications sector in Europe, as well as elsewhere, because carriers and consumers are facing higher prices and fewer choices. Beyond the competition these companies feel they are facing, they claim they are asking for Europen Union help to ensure consumer advances in technology. Botaro Hirosaki, Senior Vice President, NEC Corporation says, `Qualcomm`s anti-competitive licensing practices and excessive royalties are restricting innovation and the development of 3G mobile telephony to the detriment of consumer choice.`