Fair trade regulator CCI on Friday ordered a detailed probe against Swedish telecom giant Ericsson, after it ‘prima facie’ found the company in violation of the competition norms.
The order follows complaints that the practices adopted by Ericsson with regard to royalty rates were discriminatory as well as contrary to FRAND ((fair, reasonable, and non-discriminatory) terms, CCI said.
“The royalty rate being charged by Ericsson has no linkage to the functionality of the patented product rather it has linkage to the final price of the manufactured product in which the patent is being used.
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“Ericsson seems to be acting contrary to the FRAND terms by imposing royalties linked with the cost of manufacturing product. Charging of two different licence fees per phone for use of the same technology, prima facie, appears to be discriminatory,” it said.