Eu Antitrust Regulators Fine Qualcomm $1.2 Billion Over Apple Tree Deal

The antitrust fine has hitting Qualcomm badly.

The European Commission has levied a fine of €997 Million, roughly $1.2 Billion, against the U.S. chipmaker Qualcomm Inc. for violating antitrust laws inwards a serial of deals amongst Apple past times "abusing its marketplace potency inwards LTE baseband chipsets."

According to the European Union (EU), Qualcomm paid Apple billions of dollars to brand the iPhone-maker alone purpose its 4G chips inwards all its iPhones in addition to iPads, reducing contest from other competing manufacturers inwards the LTE baseband fleck manufacture similar Intel.

The European Commission launched an investigation inwards 2015, which revealed that Qualcomm abused its marketplace potency inwards LTE baseband chipsets in addition to struck a bargain amongst Apple inwards 2011, which meant the iPhone maker would lead maintain to repay Qualcomm if it decided to purpose a rival's chipsets until the terminate of 2016, pain conception inwards the fleck sector.

"This meant that no competition could effectively challenge Qualcomm inwards this market, no affair how practiced their products were. This is illegal nether European Union antitrust rules in addition to why nosotros lead maintain taken today's decision," European Union contest commissioner Margrethe Vestager said inwards a press statement.

Apple received payments from Qualcomm for roughly v years betwixt 2011 in addition to 2016. The fellowship nevertheless uses Qualcomm components inwards its iPhones in addition to iPads, but it began using Intel LTE modems inwards its iPhone seven in addition to seven Plus devices afterwards the understanding ended.

The fine imposed on the fleck maker is hefty, but won't wound Qualcomm's bottom business significantly equally it represents 4.9 per centum of the company's turnover inwards 2017, according to the EU's antitrust commission.

Qualcomm said it 'strongly disagrees' amongst the European Commission's conclusion in addition to volition 'immediately appeal' it at the General Court of the European Union. The fellowship too believes its understanding amongst Apple does non violate European Union contest law.

"We are confident this understanding did non violate European Union contest rules or adversely behavior upon marketplace contest or European consumers," Qualcomm General Counsel Don Rosenberg said inwards a statement. "We lead maintain a rigid example for judicial review, in addition to nosotros volition forthwith commence that process."

Not only one, Qualcomm is facing a patent struggle amongst Apple over chip royalties, in addition to simultaneously fending off a $100 billion hostile takeover from competition chipmaker Broadcom, but it rejected the bid concluding November, proverb it 'dramatically undervalued' the company.

Share This :