Nokia deal created anti-trust issues for Microsoft and Samsung

samsung-hqSamsung has told a court that its collaboration with Microsoft on Windows phones raised antitrust problems once Microsoft bought Nokia’s handset business.

The filing comes from Microsoft’s lawsuit accusing Samsung of breaching a business collaboration agreement. It claimed that Samsung still owes $6.9 million in interest on more than $1 billion in patent royalties it delayed paying.

However Samsung said the Nokia acquisition violated its 2011 deal with Microsoft because it effectively required the sharing of secret information with a rival.

Samsung said it agreed in 2011 to pay Microsoft royalties in exchange for a patent license covering Samsung’s Android phones.

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

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 because if it had done so it would have breached US antitrust laws.

The agreements, now between competitors, invited charges of collusion,” Samsung said in the filing.

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