Micromax Reports Ericsson to CCI over Unfair Play in the Handset Production Market
Competition Commission of India (CCI) is an organization established by the Government of India, to oversee that The Competition Act, 2002 is adhered to by various stakeholders in the India commerce market. The body ensures that no competitors practices adverse practices which undermines its competitors in an unfair competition move. This body was established back in 14th October 2003, and it became fully functioning in May 2009.
Mumbai: Micromax which is one of the leading handset manufacturer in India has reported to CCI that Ericsson (leading telecom gear manufacturer in India) over unfair practices in the market that undermines the spirit of fair competition in the Indian market.
Micromax alleges that Ericsson abuses the dominance in has in the market, since it is alleged to overcharge the royalties on the GSM technology patents. CCI has established an investigation into the Micromax accusation against Ericsson, after CCI establishing a prima-facie evidence which shows that Ericsson is practicing unfair trade practices which greatly undermines the spirit of fair competition.
According to Micromax, this Sweden-based Ericsson has been demanding discriminatory, exorbitant and unfair royalty for the Micromax’s GSM technology-related patents. Upon initial investigation by CCI into the accusation, the CCI established that the case was fit for further investigation thoroughly by the Director General and establish if indeed Ericsson violated the provision in the Competition Act, 2002.
It has been established by the prima facie that Ericsson is the dominant stakeholder in both the GSM and CDMA market in India. It also holds a significant number of patent over the same. This is according to the CCI’s order dated 12th November, which further clarified that Ericsson has 33,000 patents to its credits, and out of these 400 are granted to India.
Ericsson is the largest holder of Standard Essential Patents (SEPs) for mobile communication devices using the 2G, 3G and 4G technologies which are basically smartphones and tablet devices. Since Ericsson got hold of these SEPs, there has been no alternative technology available in the market, thus in effect making Ericsson have complete dominance over all its present and any other prospective licensees which will engage in any of its relevant product market.
