EU Antitrust Regulators Probing Tech Group AOM's Video Licensing Policy

EU antitrust regulators are investigating the video licensing policy of the Alliance for Open Media (AOM), whose members include Alphabet Google, Amazon, Apple and Meta, the European Commission said on Thursday. Reuters reports: Founded in 2015, the group aims to create a new standard software for streaming higher-quality 4K video on browsers, devices, apps, and gaming, known as AV1. While the AV1 software is not yet adopted widely, Netflix and YouTube have started using it for some customers, and browsers such as Google Chrome and Firefox have started to support the new format. Intel, Huawei, Mozilla, Samsung and Nvidia are also AOM members, according to its website.

In a questionnaire sent to some companies earlier this year and seen by Reuters, the EU watchdog said it was investigating alleged anti-competitive behavior related to the license terms of AV1 by AOM and its members in Europe. 'The Commission has information that AOM and its members may be imposing licensing terms (mandatory royalty-free cross licensing) on innovators that were not a part of AOM at the time of the creation of the AV1 technical, but whose patents are deemed essential to (its) technical specifications,' the paper said. It said this action may be restricting the innovators' ability to compete with the AV1 technical specification, and also eliminate incentives for them to innovate.

The questionnaire also asked about the impact of an AOM patent license clause in which licensees would have their patent licenses terminated immediately if they launched patent lawsuits asserting that implementation infringes their claims. Companies risk fines of up to 10% of their global turnover for breaching EU antitrust rules.

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