Sweden’s Ericsson under investigation in China over licensing issues amid 5G network roll-outs
- Telecoms equipment maker Ericsson earns about seven per cent of its annual revenue in China
Swedish telecommunications equipment giant Ericsson said on Tuesday that China’s market regulator was investigating the company over licensing issues, as countries around the world prepare to roll out next-generation 5G mobile networks.
China’s State Administration of Market Regulation is investigating the firm because of complaints against its intellectual property rights licensing in the country, a spokesman for Ericsson told Agence France-Presse.
The telecoms gear maker earns about seven per cent of its annual 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, The Wall Street Journal reported earlier, citing a person familiar with the matter.
“Ericsson is fully cooperating with the investigation and will refrain from further comments while it is ongoing,” a spokesman for the company said in an emailed statement.