The European Commission accused China of pressuring innovative European high-tech companies into lowering their rates by allowing its courts to set binding worldwide royalty rates.

"The EU's vibrant high-tech industries must be allowed to compete fairly and on a level playing field," said Maros Sefcovic, the EU's trade commissioner.

"Where this is not the case, the Commission takes decisive action to protect their rights".

The action comes amid increasing trade tensions between China and the EU.

Beijing and Brussels have taken a series of tit for tat measures, slapping tariffs or launching probes and lawsuits over alleged unfair practices relating to a wide range of products including electric cars, cheese and brandy.

The latest challenge revolves around so-called "standard essential patents" protecting technologies enabling the manufacturing of goods to meet a certain standard.

European companies hold many such patents, notably in the telecom sector, according to the EU.

By letting its court set worldwide royalty rates for those patents, China was forcing EU companies to give its firms cheaper access to those technologies, the 27-nation bloc alleged.

The case is related to another challenge launched in 2022 where Brussels accused Beijing of preventing European tech companies from using foreign courts to defend their patents.