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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 in addition to also iPads, reducing competition through some other competing manufacturers inside the LTE baseband chip industry like Intel.

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

“This particular meant that will no rival could effectively challenge Qualcomm in This particular market, no matter how Great their products were. This particular can be illegal under EU antitrust rules in addition to also 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 in addition to also 2016. The company still uses Qualcomm components in its iPhones in addition to also iPads, yet that will began using Intel LTE modems in its iPhone 7 in addition to also 7 Plus devices after the agreement ended.

The fine imposed on the chip maker can be hefty, yet won’t hurt Qualcomm’s bottom line significantly as that will represents 4.9 percent of the company’s turnover in 2017, according to the EU’s antitrust commission.

Qualcomm said that will ‘strongly disagrees’ with the European Commission’s decision in addition to also will ‘immediately appeal’ that will 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 This particular 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, in addition to also we will immediately commence that will process.”

Not just one, Qualcomm can be facing a patent fight with Apple over chip royalties, in addition to also simultaneously fending off a $100 billion hostile takeover through rival chipmaker Broadcom, yet that will rejected the bid last November, saying that will ‘dramatically undervalued’ the company.

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