QUALCOMM loses at NASDAQ: EU fine confirmed, only minimal reduction

Court confirms EU decision on fine against Qualcomm

The battle between US chipmaker Qualcomm and the European Union (EU) has reached a new stage: The General Court of the European Union has largely confirmed the EU Commission's 2018 decision, imposing a fine of 242 million euros on Qualcomm for abusing its market dominance.

Qualcomm loses on all essential points

The court rejected Qualcomm's appeal against the EU ruling on all essential points. The judges confirmed that Qualcomm had abused its market power and violated antitrust law.

However, the court also reduced the fine from 997 million euros to 242 million euros. The company had complained that the fine was disproportionate and that the Commission had not taken sufficient account of mitigating circumstances.

Qualcomm's dominance in the CDMA market

The EU Commission had accused Qualcomm of abusing its market dominance in the market for chipsets for mobile phones that use the CDMA cellular standard. The company was said to have used illegal methods to stifle competition and maintain its monopoly.

Specifically, Qualcomm was accused of tying the sale of its chipsets to the granting of licenses for its cellular patents. This prevented competitors from gaining a foothold in the market.

EU Commission imposes high fine despite mitigating circumstances

The EU Commission had imposed a record fine of 997 million euros on Qualcomm in 2018. The company had violated antitrust law, according to the Commission, and had abused its market power to the detriment of competitors and consumers.

Qualcomm had appealed against the decision, arguing that the fine was disproportionate and that the Commission had not taken sufficient account of mitigating circumstances.

Court reduces fine, but Qualcomm loses on all essential points

The General Court of the European Union has now largely confirmed the EU Commission's decision. The court rejected Qualcomm's appeal on all essential points.

However, the court also reduced the fine from 997 million euros to 242 million euros. The judges took into account the fact that Qualcomm had cooperated with the investigation and that the company had already taken steps to address the Commission's concerns.

Qualcomm's statement on the ruling

Qualcomm has stated that it is disappointed with the court's decision but that it will comply with the ruling. The company also announced that it will continue to invest in innovation and to compete fairly in the market.

EU Commissioner Margrethe Vestager's statement on the ruling

EU Commissioner Margrethe Vestager, who is responsible for competition policy, welcomed the court's decision. She stated that the ruling sends a clear message to companies that abuse their market power.

Vestager also emphasized that the EU will continue to take action against companies that violate antitrust law. She said that the EU is committed to ensuring fair competition and protecting consumers.