Qualcomm was penalized €1 billion by an EU antitrust regulator in 2018 for attempting to acquire an unfair competitive advantage.
During the period 2011-2016, Qualcomm was accused of paying Apple to retain utilizing Qualcomm modems instead of competitor Intel technology.
The chip manufacturer, predictably, appealed the sanction, which the European General Court (EGC) has now dismissed, according to Reuters.
The following is a transcript of the court hearing, “By today’s judgment, the General Court annuls, in its entirety, the Commission decision. The General Court bases it on, first, the finding of a number of procedural irregularities which affected Qualcomm’s rights of defense, and, second, an analysis of the anticompetitive effects of the incentive payments.”
While Qualcomm’s payments to Apple reduced the company’s incentives to move to other suppliers, Apple had no technological options for Qualcomm’s LTE chipsets, which were essential for iPhones, according to the press release.
The Commission has the choice of filing an appeal with the EGC, but it intends to carefully assess the consequences of the court findings first.
The EGC, the European Union’s second-highest court, has already overturned a similar sanction imposed on Intel for anti-competitive actions.
In January 2022, the €1.06 billion penalty was completely discharged.
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