Qualcomm’s €997 Million Slam: EU’s Antitrust Squeeze
Yesterday, the EU’s antitrust squad slapped Qualcomm with a fine that hits close to $1.23 billion. The culprit? A deal that basically paid Apple to stick to Qualcomm chips alone, keeping rivals like Intel in the dust.
How the Fine Hit
- Qualcomm allegedly funneled billions into Apple so that Apple would use only Qualcomm’s baseband chipsets in every iPhone and iPad.
- That bargain costs 4.9% of last year’s revenue—so we’re talking a decent slice of Qualcomm’s yearly pie.
Stock Market Reaction
Shares dropped up to 5% in pre‑market trading, a clear sign that investors saw the news as a serious setback.
Commissioner’s Stand‑Up
European Competition Commissioner Margrethe Vestager called it out: “Qualcomm paid billions to Apple, not just lower prices, but contingent on Apple buying exclusively Qualcomm’s chips. That meant no rival could dethrone Qualcomm, no matter how good their products were.”
Qualcomm’s Rally
Qualcomm says it strongly disagrees with the decision and will appeal to the General Court of the European Union right away. The company insists the fine has nothing to do with its licensing business and won’t affect ongoing operations.
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