Chinese regulators have unexpectedly launched an antitrust investigation into Ericsson, the Swedish telecommunications equipment vendor.
The investigation, initiated by China’s market regulator, centers on complaints regarding Ericsson’s intellectual property licensing practices.
An Ericsson spokesperson responded:
“Ericsson will cooperate fully with this investigation.
We license our industry-leading patent portfolio on FRAND (fair, reasonable, and non-discriminatory) terms and conditions and have always been committed to these FRAND principles.”
This surprise inquiry comes amid heightened global tensions involving China’s major telecoms supplier, Huawei. International concerns — led by the United States — have focused on Huawei’s alleged ties to the Chinese government and potential national security risks.
Earlier this year, Huawei’s chief financial officer, Meng Wanzhou, was arrested in Canada on a U.S. warrant alleging that she misrepresented the relationship between Huawei and a subsidiary, Skycom, in order to evade sanctions on Iran. Beijing demanded her immediate release and warned of “serious consequences” if Canada did not comply.
Roland Paris, a former foreign policy adviser to Canadian Prime Minister Justin Trudeau, criticized Beijing’s reaction:
“Perhaps because the Chinese state controls its judicial system, Beijing sometimes has difficulty understanding or believing that courts can be independent in a rule-of-law country.
There’s no point in pressuring the Canadian government. Judges will decide.”
In 2018, Ericsson reclaimed the position as the world’s largest telecoms infrastructure provider, surpassing Huawei. According to IHS Markit data, Ericsson’s global market share rose 2.4 percentage points to 29 percent, while Huawei’s share fell 1.9 points to 26 percent.
The current antitrust probe into Ericsson appears to be the first of its kind against a foreign telecoms company in China since the investigation of U.S. chipmaker Qualcomm.
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