Qualcomm Requests EU Court To Overturn 242 Million Euro Fine
Qualcomm, a leading chipmaker from the USA, has once again returned to the EU court. The US company is hoping to get a 242 million Euro fine overturned, which was imposed for antitrust issues.
The multi-million Euro fine on Qualcomm was imposed by the European Commission in 2019. As per the details, the company was charged with selling chipsets at a much lower cost between 2009 - 2011.
According to the EU Commission, such pricing tactics used by Qualcomm were predatory and undermined the sales of other players which can't afford such low prices. One company, in particular, was Icera which was negatively affected by Qualcomm's strategy.
Just last year, Qualcomm managed to get a 997 million Euro fine reversed through a General court. In that case, the company was accused of paying money to Apple so that it exclusively uses Qualcomm hardware in its iPhones and iPads.
The lawyer appointed by Qualcomm asked a lot of questions in an attempt to clear the company's case. For starters, he pointed out that Qualcomm's share in the UMTS is only 0.7%. This means that the company's ability to drive out the rivals from the market was not as high as the EU Commission made it to be!
He also raised the question of what was a fair price at which Qualcomm should have sold its chipset. Also, what's the price cost test, and how could the company pass it for each quarter?
On the other hand, the lawyer of the EU Commission argued that the actions taken by Qualcomm were aimed at eliminating a rival. He said that the company wanted to take out the rival company before it could pose a threat to Qualcomm's chipset business.
According to an EU Commission lawyer, the company called Icera was very clear about establishing a good stronghold in the chipset market. Furthermore, the company was also poised for future growth as well.
To get a clear view of the court decision, we will have to wait for a few more months. If we look at history, the company has already managed to get a fine reversed.