European Union probes Samsung over patents

The European Commission has opened a formal investigation against the Korean company, Samsung, to determine if they improperly used some of its patents to "distort competition in the European market for mobile devices" in their
war against U.S. computer giant Apple.

They have accused the Korean firm of using anticompetitive tool, in violation of the treaty to meet the standards of European Telecommunications Standards Institute.

To confirm these suspicions, the EU executive may impose a heavy fine to Samsung, believed to be 10 percent of the global turnover of the firm, because this behavior violates the Community rules on competition. The opening of the
case means that Brussels will examine the case as a priority, but does not prejudge the outcome, as the Commission has clarified in a statement.

"In 2011, Samsung sought injunctive relief in various member states against competing mobile device makers based on alleged infringements of certain of its patent rights which it has declared essential to implement European telephony
standards," according to the commission.

“In order to guarantee undistorted competition and to reap the positive economic effects of standardization it is important that Frand commitments be fully honored by the concerned undertakings."

Brussels will investigate in particular whether Samsung has violated the "irrevocable commitment" which they promised to follow in 1998 with the European Institute of Telecommunications Standards.

"The Commission will examine whether such behavior amounts to an abuse of a dominant position prohibited by Article 102 of the Treaty on the Functioning of the EU (TFEU)."

At that time, the Korean company ensured they will license the important technology innovations into the market place, thus making a fair, reasonable and nondiscriminatory use of any essential patents related to the European standards
for mobile telephony.

Though the preliminary investigations started back in November, last year, the EU commission has given no time frame for the investigation.

The Commission will investigate whether this behavior constitutes an abuse of dominant position prohibited by the Treaty. The EU executive has already informed Samsung and the competition authorities of the Member States of the
initiation.

Samsung joins the technology companies like Google, Intel, Microsoft, Apple or IBM, which have been or are being investigated by Brussels for abuse of dominant position.

Posted by Farasat Ali on Feb 1 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry