The EU has bowed Qualcomm € 242 million (around $ 272 million) to sell predators predators 3G modem chips in an attempt to run a competing supplier, Icera, out of the market. The EU Commission states that the company used its dominance in the market to sell mobile internet dongles chips at a cost between 2009 and 2011. Today's announcements mark the end of the EU's nearly four-year survey of Qualcomm's actions.
Announces the fine, EU Competition Commissioner Margrethe Vestager, said "Qualcomm's strategic behavior prevented competition and innovation in this market and limited the choices available to consumers in a sector with high demand and potential for innovative technology." [1
The EU survey found that Qualcomm sold its 3G chips below cost to Huawei and ZTE, just as Icera was as a viable competitor. The Commission called these price concessions "targeted" and said they "allowed [Qualcomm] to maximize the negative impact on Icera's business."
Today's fin is just the latest in a series of antitrust emissions that Qualcomm has been hit with in recent years. Earlier this year, a US judge ruled that Qualcomm charges "unreasonably high" royalties for its patents, and criticized its practice of offering discounts to customers who agree to use their chips exclusively. This latest practice was also subject to a $ 1.2 billion fine, also from the EU, issued last year. Regulators in South Korea, China and Taiwan have bowed Qualcomm over a number of competitive practices.
However, unlike previous antitrust decisions, today's finals are unlikely to have a continuous impact on Qualcomm's bottom line. The Predator Price EU says, Qualcomm is engaged in ended in 2011, and in today's decision, the Commission has not criticized any of the company's current practices, or the amounts it charges for its patents or licenses. Instead, the fine, which accounts for 1.27 percent of the company's 2018 revenue, is designed to prevent other companies from attempting the same.
Unfortunately for the Icera, the fine has come too late to save the fashion business. The company was acquired by Nvidia in 2011, which completed the modem market in 2015. Nvidia had hoped to integrate its modems into its Tegra processors, but the plans never made it happen.
Now, as we move toward the 5G era, the modem market is due to losing another player. Intel announced that it would leave the 5G modem business after Apple and Qualcomm completed their long-standing legal battle and left only a handful of players left to compete with Qualcomm's 5G modems.