Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
Related Articles
‘It sold 3G chipsets at below cost of production’
In yet another European Union (EU) move against a U.S. tech giant, the bloc’s antitrust chief on Thursday fined chipmaker Qualcomm $271 million, accusing it of “predatory pricing” to drive a competitor out of the market. EU Antitrust Commissioner Margrethe Vestager said Qualcomm was abusing its market dominance in 3G baseband chipsets. She said it sold them below the cost of production to force start-up Icera out of the market almost a decade ago. Icera was based in Britain and was seen as a rival that could eventually threaten Qualcomm’s dominance.
Ms. Vestager said the market was too important to tolerate such abuse.
“Baseband chipsets are key components with which mobile devices can connect to the internet. Qualcomm sold these products at a price below cost to key customers with the intention of eliminating a competitor,” she said. The fine of €242 million represents 1.27% of Qualcomm’s 2018 revenue. The EU had already fined Qualcomm $1.23 billion last year after concluding it bribed Apple to stifle competition.
Qualcomm said it was planning to appeal Thursday’s fine in an EU court and denied the charges.
“This decision is unsupported by the law, economic principles or market facts, and we look forward to a reversal on appeal,” Don Rosenberg, general counsel of Qualcomm, said.
