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EC sends antitrust objections to Motorola over Apple licence
2013-05-06 15:33:00| Telecompaper Headlines
(Telecompaper) The European Commission has accused Motorola Mobility of abusing its dominant market position by enforcing an injunction against sales of Apple devices for alleged infringement of Motorola technology included in industry-essential patents. In its ongoing competition investigation into the Google subsidiary, the EC sent a statement of objections to Motorola, saying its preliminary view is that the company's seeking and enforcing an injunction against Apple in Germany amounts to an abuse of a dominant position prohibited by EU antitrust rules. Motorola had committed to licensing the technology in question on FRAND terms, as part of its inclusion in GPRS standards. Despite Apple saying it was willing to pay FRAND royalties set by the German court, Motorola sought an injunction against Apple in Germany and went on to enforce it. The EC said the threat of such an injunction distorts competition, resulting in a "hold-up" of the potential licensee that must accept less generous licensing terms in order to include the standards-essential technology in its devices. Motorola will have the opportunity to respond to the EC's objections and propose changes to its business before the EC takes a final ruling. If it ultimately decides Motorola did infringe EU law and competition, the company could face a fine of up to 10 percent of turnover during the period of the violation.
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Category:Telecommunications