US tech giant Qualcomm, the world's largest chip maker, received a fine of 242 million from the European Commission. The reason? Abuse of dominant position on the market for integrated circuits intended for 3G.
In particular, according to Europe, Qualcomm has sold its products in dumping, i.e. at prices lower than the cost of production for the sole purpose of put the competitor Icera out of the market. According to the rules of the European Union, this is an unfair commercial practice.
“Baseband chipsets are key components that allow mobile devices to connect to the Internet – explained the European Commissioner for Competition, Margrethe Vestager – Qualcomm sold these products below cost to its key customers with the intention of eliminating a competitor. A behavior that has impeded competition and innovation in this market and has limited the choice available to consumers”.
The Commission specifies that the 242 million fine takes into account the duration and gravity of the infringement and is equal to 1,27% of the turnover generated by Qualcomm in 2018.
