Qualcomm appeals against European fine for obstruction of competition
Qualcomm is appealing against a European antitrust fine of 242 million euros. The company was fined by the European Commission in 2019 because the company sold certain 3G chipsets below cost to thwart a competitor.
Qualcomm steps up the dishthe second highest court of the European Union, writes Reuters news agency. The company is appealing against a fine of 242 million euros. The company was imposed this fine by the European Commission in 2019. The Commission stated that Qualcomm sold its 3G chipsets below cost years ago. In such practices, also called predatory pricing, companies offer products at such low prices that competitors cannot keep up.
Qualcomm sold its 3G chips at low prices to smartphone makers ZTE and Huawei. The company did this to push British chip maker Icera out of the market, the European Commission stated in 2019. According to the EU, the trading practices took place between 2009 and 2011. Icera is now part of Nvidia.
A lawyer for Qualcomm stated during a hearing on Monday that the fine is ‘the second part of the European Commission’s campaign against Qualcomm’, Reuters writes. He stated that 3G chipsets ‘only accounted for 0.7 percent of the UMTS market’ and that it was therefore not possible for the company to squeeze competitors out of the chipset market. A lawyer for the Commission told the court that Qualcomm’s actions showed it was determined to eliminate a rival before it could pose a threat. The General Court, which is part of the European Court of Justice, will deliver a ruling in the coming months.
Qualcomm won a similar case in the General Court last year. A European fine of 997 million euros was waived due to procedural irregularities in the investigation, which prevented Qualcomm from properly defending itself. This fine of almost one billion euros revolved around agreements that Qualcomm allegedly had with Apple. Qualcomm is said to have paid the tech giant billions just to use its chips in iPhones and iPads, in order to exclude competitors such as Intel.