EU charged Qualcomm €997m for misusing its formidable position in chipset market

By Maurizio Pesce from Milan, Italia (Qualcomm CES 2016 booth) CC BY 2.0 via Wikimedia Commons

American multinational semiconductor and telecommunications firm Qualcomm has been charged by the European Commission to pay €997 million for abusing its market dominance in LTE mobile-based chipsets. According to the investigation reports, During 2011 to 2016 period Qualcomm has paid Apple to integrate their LTE microchips into their devices. As a result of this investigation now the European Commissioner of competition policy, Margrethe Vestager fined Qualcomm with huge sum. Well, it is not the first time European Commission charging tech’s giants as last year they’ve also charged Google for anti-trust.

“Qualcomm prevented rivals from competing in the market by making significant payments to a key customer on condition it would not buy from rivals,” – the Commissioner stated

Under European Union guidelines, it is not against the law for a firm to overrule an industry. However, the method Qualcomm adopted was observed to be in violation of rules. During 2011 to 2016 period the firm was identified to have misused their prominence by stopping competitors from contending in the business. Above all, the issues persisted within their contract to provide Apple with LTE microchips for their devices. Qualcomm rewarded a fortune of US Dollars to a significant client, Apple, to ensure not to purchase chips from competitors. This implied that no competitor can successfully face Qualcomm within this marketplace, regardless of how good their merchandise was. Qualcomm’s attitude refuted customers as well as other organization’s additional preference and technology.

The charged sum alone marks merely 4.9% of Qualcomm’s profit in 2017 and will probably do modest to lessen their popularity over the microchip industry. Even so, the undeniable assortment of awaiting lawsuits it still confronts, such as one for pricing issues concerning Nvidia, Qualcomm is going to spend this year by paying fines and ensnared by legal challenges.

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