Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Samsung says Microsoft deal invites 'charges of collusion': filing

Published 10/31/2014, 01:04 PM
Updated 10/31/2014, 01:10 PM
© Reuters People pose with mobile devices in front of projection of Samsung logo in this picture illustration taken in Zenica

© Reuters People pose with mobile devices in front of projection of Samsung logo in this picture illustration taken in Zenica

By Dan Levine

(Reuters) - Samsung said its collaboration with Microsoft on Windows phones raised antitrust problems once Microsoft completed its acquisition of Nokia's handset business, according to a court filing.

The filing late on Thursday stems from Microsoft Corp's (O:MSFT) lawsuit accusing Samsung Electronics Co Ltd (KS:005930) of breaching a business collaboration agreement. The lawsuit, filed earlier this year in a New York federal court, says South Korean smartphone company Samsung still owes $6.9 million in interest on more than $1 billion in patent royalties it delayed paying.

Samsung, meanwhile, said the April Nokia acquisition violated its 2011 deal with Microsoft.

In a court filing late on Thursday, Samsung said it agreed in 2011 to pay Microsoft royalties in exchange for a patent license covering Samsung's Android phones. The Android operating system is developed by Google Inc (O:GOOGL).

However, Samsung also agreed to develop Windows phones and share confidential business information with Microsoft as part of that collaboration. Microsoft would reduce the royalty payments if Samsung met certain sales goals for Windows devices, the filing said.

Microsoft's Windows phones have failed to take significant market share from iPhone maker Apple Inc (O:AAPL) and devices running on Android.

Once Microsoft acquired Nokia, it became a direct hardware competitor with Samsung, the filing said, and the South Korean company refused to continue sharing some sensitive information. Doing so could have created problems with U.S. antitrust laws, Samsung said.

" (T)he agreements, now between competitors, invite charges of collusion," Samsung said in the filing.

In a statement, Microsoft said it was "confident that our case is strong" and that it will succeed.

Antitrust regulators in the United States and other countries have approved Microsoft's Nokia acquisition.

© Reuters. People pose with mobile devices in front of projection of Samsung logo in this picture illustration taken in Zenica

The lawsuit in U.S. District Court, Southern District of New York is Microsoft Corp vs. Samsung Electronics Co Ltd, 14-6039.

(Reporting by Dan Levine in San Francisco; Editing by Lisa Von Ahn)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.