Brazil’s Administrative Council for Economic Defense (CADE) has officially launched an administrative inquiry into Swedish telecom giant Ericsson over alleged anticompetitive conduct in the licensing of standard-essential patents (SEPs) related to 5G technology.
The decision follows a unanimous ruling by CADE’s Tribunal on Wednesday, despite a private settlement previously reached between Ericsson and the complainants, Motorola and Lenovo.
The dispute centers on claims that Ericsson refused to license essential 5G patents in Brazil independently, instead requiring a global licensing agreement under conditions described as unfair and discriminatory. Such behavior, the complainants argued, constituted abuse of a dominant position and violated international commitments regarding the fair, reasonable, and non-discriminatory (FRAND) licensing of SEPs.
Although the parties ultimately entered into a global licensing agreement and Motorola and Lenovo withdrew their appeal, CADE emphasized the public interest involved in the case. The Tribunal determined that the nature of the alleged conduct—potentially affecting market access for 5G devices—warranted further scrutiny beyond the resolution of private disputes.
Commissioner Gustavo Augusto, the reporting advisor on the case, stressed that there are indications of price discrimination and potentially abusive commercial conditions that could exclude competitors from the 5G market. He underscored that SEPs, by definition, are indispensable for access to standardized markets such as mobile telecommunications, making their fair licensing essential for healthy competition.
“Refusal to license these essential patents in Brazil may equate to a refusal to sell goods or provide services, which can amount to a violation of Brazil’s Competition Law,” Augusto said. He also noted that Ericsson’s pricing strategies might reflect first-degree price discrimination—charging different licensees the maximum each is willing to pay—thereby distorting the competitive landscape.
The commissioner pointed out that 5G technologies are not limited to mobile phones but are increasingly integrated into smart devices and sectors like autonomous vehicles. When such essential technologies are concentrated under the control of a single firm, the risks of market foreclosure and restricted access are elevated.
His proposal to forward the case to CADE’s General Superintendence for a full investigation was accepted by the Tribunal. The inquiry will examine whether Ericsson’s actions amounted to refusal to provide services, discriminatory pricing, or other practices that could hinder the operations of competitors in the 5G ecosystem.
Commissioner Victor Oliveira Fernandes supported the initiative, highlighting the need for clearer guidelines on when unilateral conduct in the context of SEP licensing may constitute abuse of dominance. “This case underscores the importance of developing a coherent antitrust framework for SEPs, especially as 5G technologies become central to innovation across multiple industries,” he stated.
The outcome of CADE’s investigation could have wide-ranging implications for competition policy in the digital and telecommunications sectors, as well as for global debates on the regulation of SEPs.
