Ericsson has sad that it would fully cooperate with Indian antitrust regulator CCI over the Indian handset maker Micromax’s allegations that Swedish firm is using its near-monopoly position in the market to demand excessive payments.

"The CCI has now decided to refer the case to the Director General for an in-depth investigation. Ericsson will fully cooperate with the authority in this investigation to reach a fair and reasonable conclusion," Ericsson said in a statement.

The contention of Micromax is that Erricsson was demanding unfair, discriminatory and exorbitant royalty for its GSM technology-related patents.

CC said it will investigate Micromax's allegations that Ericsson is abusing its dominant position in the market, by charging "exorbitant royalty rates".

According to Wall Street Journal, Micromax has been paying Ericsson royalty fees of between 1.25% and 2% of the price of each cellphone it sells. The Indian company also has been paying a royalty of $2.50 to Ericsson for each Internet dongle it sells. Such plug-in devices enable users to connect to the Internet on tablets and laptop computers.