Qualcomm set to appeal EC’s billion euro, modem chip fine

Qualcomm set to appeal EC’s billion euro, modem chip fine

Business news |
In a short official statement, Qualcomm confirmed it has received a decision from the European Commission (EC) relating to an expired agreement between Qualcomm and Apple Inc., which was in effect from 2011 through 2016, for the pricing of modem chips.
By eeNews Europe

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The EC alleges that certain provisions of this agreement were in violation of European Union competition law and has imposed a fine of approximately 997, 439,000 million Euros (approximately $1.23 billion USD at current exchange rates).

The chip vendor disagrees with the decision and announced it will appeal it to the General Court of the European Union, adding the EC decision does not relate to Qualcomm’s licensing business and has no impact on ongoing operations.

“We are confident this agreement did not violate EU competition rules or adversely affect market competition or European consumers,” said Don Rosenberg, executive vice president and general counsel of Qualcomm. “We have a strong case for judicial review and we will immediately commence that process.”

The company is already under attack on several front from several customers over its aggressive modem pricing strategy, often accused of unfair competition practises or of being in a monopoly position. It also currently faces fines from Taiwan, Korea and is in dispute with a number of customers all bargaining pricing adjustments for its modem chipsets.

Qualcomm – www.qualcomm.com

 

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