Chinese vendor Huawei may have fended off an anti-dumping probe in Europe by forging a technology alliance with the complainant, wireless broadband modem vendor Option.
The Belgium-based firm said it has withdrawn its anti-dumping and anti-subsidy complaints to the European Commission, and pulled a safeguard request with the Belgian government, after Huawei agreed to license its connection management software.
While Option has asked for all three investigations to be closed, European law permits the EC to press on if it believes a probe is in the public interest.
Huawei will pay €27 million to license Option’s software for twelve months, with an option to up the sum to €33 million over 18 months.
The Chinese vendor also agreed to buy Option's semiconductor subsidiary M4S for €8 million, will collaborate on wireless broadband R&D projects, and is considering opening a joint R&D center with Option in Belgium.
Option complained to the EC that Huawei and other Chinese vendors were selling wireless broadband dongles in the EU at artificially low prices, accusing them of dumping old stocks into the market, and alleging that China’s government was offering unfair subsidies to the vendors.
The EC launched a probe into both claims last month, and said it would consider import duties or caps if the allegations hold up.
Around $4 billion (€2.9 billion) worth of Chinese modems are imported into Europe each year, accounting for 95% of all sales, Reuters reported.