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EU Antitrust Regulators Fine Qualcomm $1.2 Billion Over Apple Deal

The antitrust fine has hit Qualcomm badly.

The European Commission has levied a fine of €997 Million, approximately $1.2 Billion, against U.S. chipmaker Qualcomm Inc. for violating antitrust laws in a series of deals with Apple by “abusing its market dominance in LTE baseband chipsets.”

According to the European Union (EU), Qualcomm paid Apple billions of dollars to make the iPhone-maker exclusively use its 4G chips in all its iPhones along with iPads, reducing competition through additional competing manufacturers inside the LTE baseband chip industry like Intel.

The European Commission launched an investigation in 2015, which revealed of which Qualcomm abused its market dominance in LTE baseband chipsets along with struck a deal with Apple in 2011, which meant the iPhone maker would likely have to repay Qualcomm if the item decided to use a rival’s chipsets until the end of 2016, hurting innovation inside the chip sector.

“of which meant of which no rival could effectively challenge Qualcomm in of which market, no matter how Great their products were. of which is actually illegal under EU antitrust rules along with why we have taken today’s decision,” EU competition commissioner Margrethe Vestager said in a press statement.

Apple received payments through Qualcomm for approximately 5 years between 2011 along with 2016. The company still uses Qualcomm components in its iPhones along with iPads, however the item began using Intel LTE modems in its iPhone 7 along with 7 Plus devices after the agreement ended.

The fine imposed on the chip maker is actually hefty, however won’t hurt Qualcomm’s bottom line significantly as the item represents 4.9 percent of the company’s turnover in 2017, according to the EU’s antitrust commission.

Qualcomm said the item ‘strongly disagrees’ with the European Commission’s decision along with will ‘immediately appeal’ the item at the General Court of the European Union. The company also believes its agreement with Apple does not violate European Union competition law.

“We are confident of which agreement did not violate EU competition rules or adversely affect market competition or European consumers,” Qualcomm General Counsel Don Rosenberg said in a statement. “We have a strong case for judicial review, along with we will immediately commence of which process.”

Not just one, Qualcomm is actually facing a patent fight with Apple over chip royalties, along with simultaneously fending off a $100 billion hostile takeover through rival chipmaker Broadcom, however the item rejected the bid last November, saying the item ‘dramatically undervalued’ the company.

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