Germany approves auto giants’ wireless licensing pact

Germany’s antitrust authority, the Federal Cartel Office, approved on Monday a collaboration among BMW, Mercedes-Benz, Volkswagen, and Thyssenkrupp to jointly acquire wireless technology licenses, provided certain conditions are met, Reuters reported.

The alliance, known as the Automotive Licensing Negotiation Group, aims to streamline the purchase of licenses for thousands of patents necessary for enhancing 4G and 5G wireless data transmission in vehicles.

The Cartel Office noted that current competition regulations permit multiple patent holders to bundle and license their technology rights to establish wireless standards.

This approval marks a pioneering step in competition law, allowing for the first time the pooling of license agreements by license buyers.

The regulator emphasised that this development has significant implications beyond Germany, setting a precedent for similar collaborations in the automotive industry worldwide.