EU investigates Qualcomm for abusing market position with 5G modem processors

The European Commission appears to have launched an investigation last year into possible abuse of market power by Qualcomm with its rf chips for 5g. Qualcomm denies violating European competition rules with its 5G modem processors.

The European Commission asked Qualcomm for information in early December last year as part of its investigation into the company, Qualcomm said in a document it published along with its quarterly earnings. The company has not released details about the abuse of the market position that Qualcomm is suspected of. Qualcomm is still working on a response it will send to the EU. The company warns that the European Commission could impose a fine of 10 percent of annual turnover and certain restrictions on Qualcomm’s activities.

Qualcomm says it believes it does not violate European competition rules. The American manufacturer has been the subject of numerous investigations into abuse of market power. For example, the European Commission previously fined the group millions because it hindered competitors by paying Apple to purchase its LTE modem chips.

Qualcomm’s quarterly revenue grew 18 percent to $5.05 billion, or 4.59 billion euros. The CEO of the company, Steve Mollenkopf, said that his company is on the verge of turning a profit with the arrival of 5G. Qualcomm sells modems with 5g, in addition to the Snapdragon 765-soc with built-in 5g modem.