Qualcomm Fined by EU for $1.2 Billion

Qualcomm is being fined 997€ million ($1.2 billion) by the European Union for allegedly cutting an exclusive manufacturing deal with Apple, blocking out its rivals such as Intel.

Reuters / Mike Blake

According to Reuters, the EU launched its investigation into Qualcomm in 2015. Their investigation looked at a period from 2011 to 2016 where Qualcomm dominated the global market in LTE chipsets.

In a statement, the European Competition Commissioner Margrethe Vestager said “Qualcomm paid billions of U.S. dollars to a key customer, Apple, so that it would not buy from rivals. These payments were not just reductions in price -- they were made on the condition that Apple would exclusively use Qualcomm baseband chipsets in all its iPhones and iPads”.

This deal makes it difficult for companies like Intel to make an effective try at penetrating the mobile modems market.

Qualcomm was quick to release a statement regarding the fine and their appeal of it. “We have a strong case for judicial review and we will immediately commence that process”.

In a news conference, Vestager stated there would be no repercussions for Apple in the case.

Apple and Qualcomm are currently in a legal battle over Qualcomm allegedly withholding nearly $1 billion patent royalty rebates.