European Union Fines Qualcomm $270 Million For Market Abuse
7/19/2019 10:12:35 PM

Brussels, Belgium (4E) - The European Union has fined Qualcomm with $271 million, claiming that the American chipmaker has been using "predatory pricing" in order to drive a competitor out of the market for the 3G smartphone hardware.

On Thursday, the European Commission's antitrust chief Margrethe Vestager said "Qualcomm sold these products at a price below cost to key customers with the intention of eliminating a competitor."

The European Commission detailed that the US company was able to gain almost a 60 percent share of the market by undercutting a rival from the United Kingom called Icera.

The Commission pointed out that the main infraction took place between the years 2009 and 2011.

Apparently, the infraction entailed the American chipmaker selling the components for the 3G smartphones below cost to China's phone maker giants ZTE and Huawei.

On its part, the US company said it would appeal the European Union's decision, which it described as "meritless."

On this matter, general counsel Don Rosenberg said in a statement that "The Commission spent years investigating sales to two customers, each of whom said that they favored Qualcomm chips not because of price but because rival chipsets were technologically inferior. This decision is unsupported by the law, economic principles or market facts."

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