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Antitrust

Tuesday, November 24, 2009

The European Commission announced Tuesday that it has dropped its probe of Qualcomm over whether it was charging unreasonably high royalties for the use of its patented technology. "After an extensive four-year investigation into Qualcomm's practices, and despite the coordinated nature of the complaints made against it, the commission has terminated its investigation with no finding of a violation," Qualcomm Executive Vice President and General Counsel Don Rosenberg said in a statement. "Throughout the investigation we have fully cooperated with the commission, while steadfastly maintaining that our business practices have enhanced consumer welfare."

In a statement, the commission said it decided to end its probe after firms that had filed complaints against Qualcomm, which makes chips for mobile phones, withdrew their complaints or announced plans to withdraw their complaints. The case involved the use of patented third-generation, or 3G, technology. "The Qualcomm case has raised important issues about the pricing of technology after its adoption as part of an industry standard," according to the commission. "In practice, such assessments may be very complex, and any antitrust enforcer has to be careful about overturning commercial agreements." Still, the commission has been aggressive in going after firms it believes may be violating antitrust laws. It imposed a record $1.45 billion fine against Intel in May for market abuse.

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