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China probes Sweden's Ericsson over licensing

AFP  |  Beijing 

Swedish said Tuesday that China's market regulator was investigating the company over licensing issues as countries around the world prepare to roll out the next generation of mobile networks.

is investigating the firm due to complaints against its intellectual property rights licensing in China, a for told AFP.

The telecom gear maker earns about seven percent of its revenue in China, according to its 2018 annual report.

China's market regulator dispatched roughly 20 investigators to raid Ericsson's Beijing office on Friday, reported earlier, citing a person familiar with the matter.

"is fully cooperating with the investigation and will refrain from further comments while it is ongoing," a for the company said in an emailed statement.

Ericsson and its US-based competitor own a large portion of patents connected to and and devices and have come under fire for the high licensing royalties they charge.

in 2015 agreed to pay a 6.1 billion yuan (nearly $1 billion) fine and said it would modify its business practices in to end an official anti-trust investigation triggered after unnamed industry players complained the firm was abusing its market dominance to charge high prices.

"At Ericsson, 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," a for the company said.

China's has earned a large number of patents that companies will need to license as they roll out next generation and devices.

is the world's biggest of gear and has been under fire in recent months after the arrest of a top in and a global campaign by to blacklist its equipment over security concerns.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 15:05 IST