Qualcomm Loses Legal Battle Against European Union Antitrust Fine

The European Union's General Court has largely rejected Qualcomm's appeal against a 242 million euro ($269 million) fine imposed by the European Commission in 2019. The commission had accused Qualcomm of engaging in "predatory pricing" to drive competitor Icera out of the market for 3G baseband chipsets used in Apple devices.

• Qualcomm was found guilty of abusing its market dominance by selling chipsets below cost to undercut Icera.
• The General Court dismissed most of Qualcomm's arguments, except for a minor reduction in the fine amount to 238.7 million euros.
• Qualcomm maintains it has remained compliant with European competition law.

Qualcomm's Separate Antitrust Case Involving Apple

In a separate case, the European Commission had previously fined Qualcomm $1.23 billion for allegedly bribing Apple to stifle competition. However, the General Court overturned that decision in 2022 after Qualcomm appealed.

Background on the Icera Case

The European Commission argued that Qualcomm's predatory pricing tactics against Icera, a startup at the time, amounted to an abuse of its dominant market position in 3G baseband chipsets used in Apple devices and other smartphones.

• Icera was forced out of the market due to Qualcomm's below-cost pricing strategy.
• The commission found that Qualcomm's actions harmed competition and innovation in the chipset market, potentially affecting Apple and other device makers.

Qualcomm's Response and Next Steps

Qualcomm has stated that it "respectfully disagrees" with the General Court's judgment and the European Commission's decision. The company believes it has always complied with European competition law.

• Qualcomm may consider further appeals or legal challenges against the fine.
• The case highlights ongoing antitrust scrutiny of dominant technology companies and their business practices, particularly in relation to Apple and other major clients.

Implications for the Chipset Market and Apple

The ruling against Qualcomm could have implications for the competitive landscape in the chipset market, potentially affecting Apple and other device manufacturers that rely on these components.

• Enforcement of antitrust laws aims to promote fair competition and innovation in the chipset market.
• Apple, as a major customer, may benefit from a more competitive market for chipsets used in its devices.