DWF logo

Search

DWF logo

            DWF comments on the antitrust implications of the US ban on Huawei

            Christian Peeters, competition law partner at global law firm DWF, looks at the US administration's ban on Huawei from an antitrust perspective and highlights how Google's and other companies' compliance with the executive order has knock-on effects on competitive smartphone markets in the EU and on EU consumers.

            Date: 30/05/2019

            Christian Peeters said: "Google's ban on Huawei and the precedent it has set for other companies, it set to affect competition in Europe and European consumers much more than in the United States where Huawei has not managed to establish a position of more than a single-digit share on the market for mobile devices. By contrast, in Europe, Huawei is a serious contender accounting for around 20% of the market. Any measure limiting Huawei's ability to effectively compete in Europe threatens to result in a material reduction of the competitive constraint that other device manufacturers experience.

            "While the existence of a competitive relationship is not required to establish a market power abuse, it is a relevant factor to be taken into account when the conduct in question is targeting a direct competitor – such as in the case of Google and Huawei who are both active in the manufacture of mobile devices and the development of mobile operating systems. Yet, the harm potentially resulting from the ban is not limited to the rather abstract concept of effective competition. Large numbers of European consumers might find themselves in a situation where the expensive smartphone they recently purchased loses key functionalities or cannot be kept up-to-date and safe to use.

            "It will be interesting to see how the European Commission translates this, considering that they have already shown a keen interest in investigating concerns about alleged abuse of market power."

            We use cookies to give you the best user experience on our website. Please let us know if you accept our use of cookies.

            Learn More

            Your Privacy

            When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. We mainly use this information to ensure the site works as you expect it to, and to learn how we can improve the experience in the future. The information does not usually directly identify you, but it can give you a more personalised web experience.
            Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change permissions. However, blocking some types of cookies may prevent certain site functionality from working as expected

            Functional cookies

            (Required)

            These cookies let you use the website and are required for the website to function as expected.

            These cookies are required

            Tracking cookies

            Anonymous cookies that help us understand the performance of our website and how we can improve the website experience for our users. Some of these may be set by third parties we trust, such as Google Analytics.

            They may also be used to personalise your experience on our website by remembering your preferences and settings.

            Marketing cookies

            These cookies are used to improve and personalise your experience with our brands. We may use these cookies to show adverts for our products, or measure the performance of our adverts.