EC to investigate Qualcomm

Brussels -- The European Commission Monday began an inquiry into U.S. chip-maker Qualcomm, saying it abused its position in the third-generation phones market.

The commission said it was launching the proceedings against the second-largest cell phone chip-maker after receiving complaints about the terms Qualcomm's licenses for patented technology, the Guardian Unlimited reported Monday.

The complaints, first lodged two years ago, come from well-known manufacturers such as Ericsson, Nokia, NEC, Panasonic and Texas Instruments, who allege Qualcomm's practices mean higher prices and fewer choices for operators and consumers in the market for both third, and possibly fourth-generation phones, the British newspaper reported.

The six complainants said Qualcomm charged "disproportionate and discriminatory" royalties for patents, which undermined confidence in standard-setting processes, impeded innovation and raised costs.

Steve Altman, Qualcomm president, said the company's licenses opened up third-generation technology to new players, and fostered competition and growth.

EU officials in Brussels said the inquiry could take up to two years. If found guilty, the company could be fined up to 10 percent of its global turnover.

© Copyright United Press International.