Qualcomm hit by new antitrust charges in Europe
Qualcomm has now been charged with antitrust violation in Europe after months of investigations by the European Commission. Citing an instance of a company being paid by Qualcomm to use the latters chips exclusively, European Commission today filed the antitrust charges formally.
European Commission, Europe’s main regulatory authority, charged Qualcomm with two charges. The San Diego based semiconductor company is being charged with:
- Antitrust violations – paying a major company to use Qualcomm chips exclusively
- Selling chips below cost, forcing another semiconductor company Icera out of the market
If these charges are maintained, Qualcomm will be charged 10% of its global revenues – each for both the charges, along with an immediate change in the way Qualcomm transacts in the European Union.
“I am concerned that Qualcomm’s actions may have pushed out competitors or prevented them from competing,” the EU’s antitrust chief Margrethe Vestager said.
Qualcomm said it was cooperating with EU authorities.
“We look forward to demonstrating that competition in the sale of wireless chips has been and remains strong and dynamic, and that Qualcomm’s sales practices have always complied with European competition law,” Qualcomm’s general counsel Don Rosenberg said.
European Commission has given Qualcomm three months time to respond to its charges of paying a major customer and four months time to respond to the predatory pricing charges.
