The European Commission has levied antitrust charges against Qualcomm.
Qualcomm has been troubled in Europe. The chipmaker’s long lasting antitrust difficulties increased on Tuesday, as European regulatory agencies charged the San Diego based enterprise and a new inquiry was launched in Taiwan. The topmost antitrust regulator of the EU European commission stated yesterday it had indicated the organization for illegally making payments to a major client to exclusively utilize its semiconductors and deliver them at a price lower than cost to make its rival, Icera, leave the market.
Qualcomm news exclaimed that the commission’s chief, Margrethe Vestager, stated, “I am concerned that Qualcomm’s actions may have pushed out competitors or prevented them from competing”. If a confirmation of charges is carried out, the company can be fined 10% of its international yearly sales revenue for each accusation and be compelled to alter its commercial practices. Its total revenue this year was $25bn.
Qualcomm, which revealed the EU inquiry in the previous year, stated it was collaborating with regulators there. The organization’s general and EVP Don Rosenberg stated, “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 news today affirmed that the company has 90 days to give its response to the EU accusation of exclusive payments and 120 days to respond to the predatory pricing allegation. It could also file a request for an oral hearing session before the regulatory agency to explain its point of view in a better manner. This news was followed by a 5% decline in the price of company’s stock.
Qualcomm is the leading vendor of semiconductors for mobile gadgets including baseband chips that offer processors and cellular connections that operate smartphone softwares. The company earns a huge part of its profits from charging royalties to phone manufacturers for utilizing its cellular patents.
Majority of the official inquiries have so far concentrated on its authorizing practices. That is the issue investigated by the most recent probe in Taiwan, revealed by the company yesterday. Qualcomm stated authorities in that country are probing whether its authorizing measures breach the fair trade act of the country.
The company stated it holds the belief that it has acted according to the act and aims to collaborate with local regulators. Qualcomm Breaking news reported that the South Korean antitrust authority and the US Federal Trade commission are also conducting investigations into the patent authorizing practices of the organization.
The patent power of the corporation was the major focus of an extensive antitrust investigation in China, which the organization resolved in February by agreeing to pay a fine worth $975m and to alter some of its commercial practices.