Nokia accused of unfair patent licensing practices
Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe. Daimler, the German automotive giant behind the Mercedes-Benz vehicle brand, and vehicle parts suppliers Continental, Valeo, and Bury have accused Nokia of unfair practices in the licensing of patents used in vehicles.
The auto companies have filed their complaints with the European Union antitrust office, according to Reuters.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Nokia to face an aggressive antitrust watchdog
Auto companies’ complaints bring Nokia under the scrutiny of an antitrust authority that has become aggressive in its bid to safeguard market competition. Since 2017, the European Union’s antitrust office has hit Google (GOOGL) with fines amounting to nearly $10 billion on charges related to its abuse of its market dominance. Last month, Spotify (SPOT) also complained to EU antitrust regulators about what it described as Apple’s anticompetitive practices.
Microsoft (MSFT) and Intel (INTC) are the other technology giants that have been put on the spot in Europe over antitrust issues. In 2004, Microsoft was fined more than $600 million by EU’s antitrust office on charges it had abused the market dominance of its Windows operating system, according to DW. On its part, in 2009, Intel was slapped with a fine of ~$1.3 billion in Europe due to anticompetitive practices.
Nokia’s patent license revenue fell 24%
Nokia’s patent business, which is facing challenges from European auto companies, generated $475 million in revenue in the fourth quarter of 2018, contributing 6.0% to the company’s total revenue in the period. Its revenue fell 24% year-over-year in the quarter.
In its annual regulatory filing last month, Nokia disclosed that it was undertaking an internal investigation into compliance issues at its Alcatel-Lucent business.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.