Department of Justice and ETSI

From OPENING MARKETS AND PROTECTING COMPETITION FOR AMERICA'S BUSINESSES AND CONSUMERS  April 7, 1995

Part One Protecting American Exporters
from Restraints of Trade Abroad

European Telecommunications Standards. The European Telecommunications Standards Institute (ETSI), a nonprofit association responsible for developing European telecommunications standards, had proposed the adoption of policies that might have imposed unreasonable terms on firms, including American companies, seeking to sell technology rights in Europe. The Division initiated an investigation to determine whether the proposed policy would raise U.S. antitrust concerns, including whether it would significantly reduce incentives to innovate in the United States. A number of other entities -- including, very importantly, DG-IV, the European Commission's Competition Directorate General -- raised serious questions about the ETSI proposal. ETSI eventually rescinded the proposal and adopted an interim policy that does not include the objectionable provisions.