Displaying items by tag: AntiCompetitive
US chipmaking giant Qualcomm has been fined 242 million euros by the EU for an antitrust violation.
The fine is the second penalty imposed on the company by Brussels, the previous fine being 997 million euros back in 2018.
“Our investigation found that Qualcomm abused” its dominant position in the market between mid-2009 and mid-2011 by “engaging in predatory pricing,” read the statement issued by the EU.
According to the EU’s case, the chips in question are “key components so that mobile devices can connect to the internet” and that “Qualcomm sold these products at a price below cost to key customers with the intention of eliminating a competitor,” said EU antitrust commissioner Margrethe Vestager.
The EU also stated that Qualcomm sold chipsets to Huawei and ZTE, strategic customers which are Chinese tech giants, “with the intention of eliminating Icera, its main rival”.
Qualcomm said in a statement that it would appeal this decision as a means of exposing “the meritless nature” of it.
The EU fine, according to the chipmaking giant’s General Counsel, Don Rosenberg, is “unsupported by the law, economic principles or market facts, and we look forward to a reversal on appeal.”
Rosenberg added that the Chinese tech giants chose Qualcomm because “rival chipsets were technologically inferior”.
Qualcomm was also recently fined in Korea and Taiwan for antitrust concerns. In fact, the chipmaker finalized a two-year-long legal battle with Apple over royalties.
Trump has criticized Vestager’s cases against US tech giants such as Amazon, Google and Apple. In fact, Google was previously given 3 major fines from the European Commission amounting to a total of 8.25 billion euros.
The US manufacturer of superchips that powers our smartphones has seen its shares plummet following an antitrust ruling.
US technology behemoth Google is at the centre of an investigation by Indian competition officials after it was alleged that Google may have engaged in anti-competitive practices.
Google stands accused of abusing the market dominance of its Android platform. The European Union conducted a 3-year investigation that only concluded last year.
The European Commission determined that the deemed requirements for Android device makers to use Google apps were illegal. The US tech leader was subsequently fined €4.3bn.
Reports emerging from India claim that the Competition Commission of India (CCI) began probing potential abuse of Android’s position six months ago, following a complaint filed by a group of individuals.
In addition to this, it has been further disclosed that Google executives met with Indian officials to discuss the matter in greater detail. The CCI must now make their deliberations before deciding whether the case merits a further investigation, or if it should be dismissed.
A source told Reuters, “It is on the lines of the EU case, but at a preliminary stage. The EC’s action would make it difficult for the CCI to reject further investigation without demonstrating the problem has been addressed.”
Following the decision handed down by the EC, Google announced its intentions to stop bundling preinstalled apps with its Android platform and instead charge manufacturers a fee to licence its apps, as part of a bid to avoid additional fines.
Google has been in trouble in India before.
In February 2018, the CCI imposed an INR1.36 billion ($19.3 million) fine on the company for abusing its dominance in online web search and search advertising markets.
Google appealed against the fine, stating it could cause irreparable harm and reputational loss.