The survey found that in order to force competitor Icera to withdraw from the market, Qualcomm is below the cost price.HuaweiAnd ZTE sold three UMTS chipsets.
For the survey, EU competition commissioner Margarethe Vestagher said that the baseband chipset is a key component of the mobile device's connection to the Internet. In order to eliminate competitors, Qualcomm sells these products to major customers at a lower cost, which hinders competition and innovation in the market and limits consumers' choices for the industry.
Based on this, Qualcomm's actions violated the EU's anti-monopoly regulations, resulting in a fine of 242 million euros; accounting for 1.27% of Qualcomm's 2018 turnover.
It is worth noting that as early as July 2015, the European Commission announced the official launch of two anti-monopoly investigations against Qualcomm to assess whether Qualcomm abused its market dominance to force consumers to use its chips.
The first survey was to verify that Qualcomm provided financial incentives to customers to ensure that customers use Qualcomm's exclusive baseband chips. The second survey assesses whether Qualcomm is involved in “predatory pricing” and sets the price below the cost to force competitors out of the market; this is the investigation of the fine.
In the first antitrust investigation, the European Commission found that Qualcomm hadapplePay a special fee in exchange for exclusiveMobile phoneChip supply rights, crowded out includingIntelIn the competition. As a result, the EU imposed a huge fine of 957 million euros on Qualcomm in 2018.
In addition, it is worth mentioning that there is news that this may be the last sanctions against a technology company by EU antitrust commissioner Margrethe Vestager before the end of the October 31 term.
Margrethe Vestager has filed numerous fine fines with US technology companies for five years. Among them, Margrethe Vestager has made three anti-monopoly penalties against Google, with a total penalty of 8.25 billion euros.
Not only that, but technology companies such as Facebook, Amazon, Apple, Intel, and Qualcomm have been sanctioned to varying degrees by Margrethe Vestager and its organizations; among them, Apple was asked to pay the Irish government a tax of €14 billion.
However, Margrethe Vestager’s repeated fines against US technology companies have also caused dissatisfaction with US President Trump, arguing that the EU and Margrethe Vestager are unfair to US technology companies.
For the fine, Qualcomm subsequently stated that it would appeal to the EU Intermediate Court “General Court”. Qualcomm will provide financial guarantees in lieu of paying fines during the pending appeal.
Qualcomm executive vice president and general counsel Don Rosenberg said in a statement: "The European Commission spent several years investigating our sales to two customers, but each customer said that they favor Qualcomm chips not because of price, but Because the competitor's chipset is technically poor."
After the results of the first survey were announced, Qualcomm also said it would file an appeal, and this time, Qualcomm took the same response.