“There have been some concerns,” a technology industry executive said of car producers in Europe, “that many of their counterparts in China are not paying at the moment.” The executive, like the EU officials quoted in this piece, was granted anonymity because they weren’t allowed to speak on the record.
While the Chinese are accused of not paying, they’re hardly the only ones looking to strike a deal with the telecom companies. European automakers, particular the German brands, are also looking to bring down the price from historic levels.
Courts as pawns
Meanwhile, Beijing is positioning its courts to lower prices on patented technology. In its complaint to the WTO, the EU refers to a 2023 decision by a court in Chongqing which ruled against Nokia’s objections after it set the price Chinese cell phone-maker OPPO had to pay for its technology usage. Worldwide, mind you, not just in China.
“It’s been for a long time that Chinese courts maintain that there should be a big discount for the Chinese market,” a second EU official explained. “We do not consider that it should be a Chinese court, in the Chongqing region, deciding for the rest of the world what should be the rate …”
It’s the EU’s second case in this sphere, after raising in 2020 how Chinese courts try to ban European companies from getting paid via EU courts. A panel decision on this is expected this quarter, a third EU official told POLITICO.
The fresh case comes after a December publication from the China Automotive Technology and Research Center and a Chinese university, which estimates the price for a 5G license at a range between €1.17 and €2.60 — less than a tenth what Western carmakers pay via Avanci currently.
