The European Commission will sanction Qualcomm with a $2 billion fine for anti-competitive practices in supplying components used by Apple for its iPhones.
Within a few hours, the European Commission will issue a sentence stating that Qualcomm has damaged competition and innovation in its dealings with Apple. According to the prosecution, Qualcomm would have paid and favored Apple to be the exclusive supplier of modem chips used on iPhones between 2011 and 2016.
With this move, Qualcomm would have effectively excluded all other chipset manufacturers that offered similar usable components from Apple. Only in 2016, Apple also began using modem chips supplied by Intel. Among other things, after the legal disputes with Qualcomm, Apple is thinking to exclude it altogether from the supply of modem chips of the next iPhone.
The European rules stipulate that fines should be limited to a maximum of 10% of a company’s annual turnover, and this would cost about $2 billion to Qualcomm. Indeed, the Commission seems determined to punish Qualcomm with the maximum penalty, so as to use this conviction as a deterrent to other companies. The EU has made the final decision e. Qualcomm has been fined for a total of 997 million euros.
(Source: EU Commission)