Latest in Antitrust

Image credit:

Europe's investigating Qualcomm's mobile chip dominance

Matt Brian, @m4tt
July 16, 2015
Share
Tweet
Share

Sponsored Links

While Qualcomm enjoys a healthy hold over the mobile chip industry, regulators are wondering whether the US company has achieved its dominance in a fair manner. The company has already paid $975 million to escape an investigation into its monopolistic practises in China, but now the European Commission (EC) is on its case, today announcing it has opened two antitrust probes into the company.

According to the EC, one investigation will ask if the company offered "financial incentives" to order its wireless chipsets. The second will focus on whether Qualcomm sold its 3G chips well below cost price so competitors couldn't get close to matching it.

"We were informed that the European Commission has taken the procedural step of "initiating proceedings" against Qualcomm with regard to the two ongoing investigations into Qualcomm's sale of chipsets for mobile devices," says a Qualcomm spokesperson. "This step allows investigators to gather additional facts, but it represents neither an expression by the Commission on the merits of the case nor an accusation against the Company. While we were disappointed to hear this, we have been cooperating and will continue to cooperate with the Commission, and we continue to believe that any concerns are without merit."

Today's announcement is the Commission's latest investigation into how tech companies operate in Europe. Apple and Amazon have both been accused of negotiating favorable tax deals with Ireland and Luxembourg, respectively. While Qualcomm will be forced to comply with the regulator, antitrust probes can take years. If the chip maker is found guilty, it could face fines of up to 10 percent of yearly revenue and be forced to amend the way it conducts business across the continent.

[Image credit: Nathan Rupert, Flickr]

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

Windows 10 update removes Flash and prevents it from being reinstalled

Windows 10 update removes Flash and prevents it from being reinstalled

View
T-Mobile’s TVision is a cable-cutting package for its mobile customers

T-Mobile’s TVision is a cable-cutting package for its mobile customers

View
Starlink testers will pay $99 per month for SpaceX's satellite internet

Starlink testers will pay $99 per month for SpaceX's satellite internet

View
Sony is still selling lots of games ahead of the PS5's launch

Sony is still selling lots of games ahead of the PS5's launch

View
PlayStation 5 first look: At home with Sony’s new console

PlayStation 5 first look: At home with Sony’s new console

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr