Samsung target of official EU antitrust probe

Posted:
in General Discussion edited January 2014


The European Commission announced on Tuesday that it has opened a formal investigation to decide whether Samsung's use of standard-essential FRAND patents as leverage in high profile cases, such as the company's worldwide battle with Apple, violates EU antitrust laws.



A press release from the European body's headquarters in Brussels states:

Florian Mueller of FOSS Patents notes that the announcement marks a "big step" for the European competition watchdogs, perhaps made more cogent given that the Commission has already spent months on a preliminary investigation into the matter.



Questionnaires sent to Apple and Samsung regarding the standard patent cases apparently yielded enough uncertainty as to necessitate the opening of a formal probe, in which the Commission will "examine the case as a matter of priority." Mueller guesses that the Cupertino, Calif., company may have complained informally in order to advance the preliminary investigation to priority status.





The European Commission's headquarters at the Berlaymont in Brussels, Belgium.







The issue stems from Samsung's use of so-called FRAND patents, which are considered to be essential to wireless telecommunications, against rivals such as Apple in its numerous lawsuits to slow or stop sales of the iPhone in countries such as Germany and the Netherlands.



The South Korean electronics giant has yet to see success in its 3G-essential patent suits against Apple, most recently losing two out of three such cases in Germany.



A telling court decision was handed down when Samsung attempted to gain a preliminary injunction against the newly-released iPhone 4S in the Netherlands, with the court dismissing the case due to Galaxy maker's failure to follow through with a FRAND patent licensing commitment.

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Comments

  • Reply 1 of 32
    Is it just me, or does it seem like Samsung dropped the proverbial soap in Apple's shower today and is now getting duly serviced - prison style?



    Samsung is really gettin' probed in the worst way...
  • Reply 2 of 32
    just_mejust_me Posts: 590member
    Its not me I swear
  • Reply 3 of 32
    jonoromjonorom Posts: 293member
    This is very good news. Not just for Apple, but for the whole idea of FRAND patents and standards.



    I am looking forward to seeing Samsung in the prison shower, not with Apple, but with that big bully the EC. Samsung deserves what they will get. In spades.
  • Reply 4 of 32
    jd_in_sbjd_in_sb Posts: 1,600member
    Samsung's abuse here was blatant. They had to know this was coming.
  • Reply 4 of 32
    pendergastpendergast Posts: 1,358member
    This will be interesting.
  • Reply 6 of 32
    Quote:
    Originally Posted by jd_in_sb View Post


    Samsung's abuse here was blatant. They had to know this was coming.



    My thoughts exactly, some lawyers are losing their jobs for sure... if not made to go work for Foxconn... same as prison over there right?
  • Reply 7 of 32
    jonoromjonorom Posts: 293member
    Quote:
    Originally Posted by jd_in_sb View Post


    Samsung's abuse here was blatant. They had to know this was coming.



    Yes, we know that. The real issue is: is it simply masochism (or stupidity per Alienzed), or did they have an idea?
  • Reply 8 of 32
    Quote:
    Originally Posted by Just_Me View Post


    Its not me I swear



    I think it's Just_You.
  • Reply 9 of 32
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by alienzed View Post


    My thoughts exactly, some lawyers are losing their jobs for sure...



    I don't know about that. If a lawyer who admits that he can't tell the difference between an iPad and a Tab gets to keep his job, I don't know how this is any worse.
  • Reply 10 of 32
    sflocalsflocal Posts: 6,090member
    Quote:
    Originally Posted by alienzed View Post


    My thoughts exactly, some lawyers are losing their jobs for sure... if not made to go work for Foxconn... same as prison over there right?



    I suspect it was a Samsung corporate-level honcho (not legal) that told the lawyers to file those extortion lawsuits. However, in the end, the lawyer will lose his/her job which in the end, is okay by me.
  • Reply 11 of 32
    Quote:
    Originally Posted by sflocal View Post


    I suspect it was a Samsung corporate-level honcho (not legal) that told the lawyers to file those extortion lawsuits. However, in the end, the lawyer will lose his/her job which in the end, is okay by me.



    Which, in the end . . . (okay, enough already with the shower metaphor ;-)
  • Reply 12 of 32
    Ruh-roh!
  • Reply 13 of 32
    Good. Samesung deserves to get their teeth kicked in.
  • Reply 14 of 32
    paxmanpaxman Posts: 4,729member
    Quote:
    Originally Posted by Mac.World View Post


    Good. Samesung deserves to get their teeth kicked in.



    Teeth? Tooth arsed Sammy.
  • Reply 15 of 32
    paxmanpaxman Posts: 4,729member
    Quote:
    Originally Posted by JONOROM View Post


    This is very good news. Not just for Apple, but for the whole idea of FRAND patents and standards.



    I am looking forward to seeing Samsung in the prison shower, not with Apple, but with that big bully the EC. Samsung deserves what they will get. In spades.



    I wouldn't describe the EU as a bully. A bull, perhaps.
  • Reply 16 of 32
    What about Motorola? Unlike Samsung, they succesfully won a case against Apple in Germany using a FRAND patent (which surprised a lot of people). Yet they haven't exercised their right and asked for the ban (which they are entitled to).
  • Reply 17 of 32
    tinman0tinman0 Posts: 168member
    Quote:
    Originally Posted by EricTheHalfBee View Post


    What about Motorola? Unlike Samsung, they succesfully won a case against Apple in Germany using a FRAND patent (which surprised a lot of people). Yet they haven't exercised their right and asked for the ban (which they are entitled to).



    I'm sure Moto will be hearing from the EC about that soon.
  • Reply 18 of 32
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by EricTheHalfBee View Post


    What about Motorola? Unlike Samsung, they succesfully won a case against Apple in Germany using a FRAND patent (which surprised a lot of people). Yet they haven't exercised their right and asked for the ban (which they are entitled to).



    If I understand the ruling correctly, in Germany (if not the whole EU) you have go to the owning company and request to license a patent and either be flat turned down and told it would cost some insanely unfair amount, before you can use FRAND as a defense. And it seems that either Apple didn't or they can't at least prove it. There might have been some of that 'the company that made the component licensed it for use on our behalf' stuff mixed in there as well.



    But as I also understand it, the Motorola thing is being appealed already and might not have actually been the final judgement but rather just a prelim injunction level game.



    Apparently in the Samsung case, Apple did try to license the patent and Samsung wasn't Fair/Reasonable so Apple didn't pay.
  • Reply 18 of 32
    Quote:
    Originally Posted by EricTheHalfBee View Post


    What about Motorola? Unlike Samsung, they succesfully won a case against Apple in Germany using a FRAND patent (which surprised a lot of people). Yet they haven't exercised their right and asked for the ban (which they are entitled to).



    IIRC the Moto case was won because Apple requested a "discriminatory" change to the FRAND patents that would allow them something no other licensee had...Moto rejected the deal and Apple used the tech regardless...not sure of all the details but I doubt it's something as stupid as what Samsung is suing over...I really wish HTC or Moto would step their games up and kick Samsung to the curb...they should be a components manufacturer or come back and do something more unique.



    Quote:
    Originally Posted by tinman0 View Post


    I'm sure Moto will be hearing from the EC about that soon.



    Doubtful.
  • Reply 20 of 32
    hirohiro Posts: 2,663member
    Quote:
    Originally Posted by charlituna View Post


    If I understand the ruling correctly, in Germany (if not the whole EU) you have go to the owning company and request to license a patent and either be flat turned down and told it would cost some insanely unfair amount, before you can use FRAND as a defense. And it seems that either Apple didn't or they can't at least prove it. There might have been some of that 'the company that made the component licensed it for use on our behalf' stuff mixed in there as well.



    But as I also understand it, the Motorola thing is being appealed already and might not have actually been the final judgement but rather just a prelim injunction level game.



    Apparently in the Samsung case, Apple did try to license the patent and Samsung wasn't Fair/Reasonable so Apple didn't pay.



    Quote:
    Originally Posted by EricTheHalfBee View Post


    What about Motorola? Unlike Samsung, they succesfully won a case against Apple in Germany using a FRAND patent (which surprised a lot of people). Yet they haven't exercised their right and asked for the ban (which they are entitled to).



    Moto only won a preliminary ruling because Apple explicitly did not file a response. It was a Moto victory, but purely a procedural one. And it was a victory that only happened a day after the original EU investigation of Moto's potential abuse of FRAND patents was announced. It was hypothesized that Apple purposely missed the filing date as a technique to ensure they lost the original MOTO FRAND** case and make it a bigger priority for the EU to investigate FRAND abuses. Samsung then complied and and filed their own FRAND related cases in Europe AFTER the EU said they were looking at Moto for the same thing. Could they have been dumber?



    Apple has since filed the appropriate appeals to reverse the original Moto procedural win. Maybe it really was a case of throwing a peripheral battle to set yourself up to win the war.





    **and to top it of Moto doesn't want to acknowledge that Apple buying a Qualcomm chip that was licensed to use Moto IP counts. Moto wants license fees from Apple too, after Qualcomm paid for the right to produce the chip. But hey, they were almost bankrupt, pre-Google purchase offer, hoping for a quick cash infusion from a fast settlement.
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