EC Opens Qualcomm Investigations

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The European Commission opens a pair of formal antitrust investigations into what it describes as "possible abusive behavior" by networking giant Qualcomm in the field of baseband chipsets used in mobile devices.

QualcommThe first investigation examines whether Qualcomm offers payments, rebates or other financial incentives to customers in order to exclusively buy Qualcomm baseband chipsets, thus breaking EU antitrust laws.

The second looks into whether the company engages in "predatory pricing," the selling of chipsets below cost with the aim of hindering or forcing the competition out of the market.

"We are launching these investigations because we want to be sure that high tech suppliers can compete on the merits of their products," EU commissioner Margrethe Vestager says. "Many customers use electronic devices such as a mobile phone or a tablet and we want to ensure that they ultimately get value for money. Effective competition is the best way to stimulate innovation.”

In turn Qualcomm denies the allegations, stating "any concerns are without merit." Should the company be found guilty the EU charge fines worth up to 10% of its global earnings. The investigations have no specific deadline for completion.

This is not the first time Qualcomm has ended up in hot water against a government-- earlier this year it agreed to pay Chinese authorities $975 million to end a 14-month investigation into anti-competitive practices.

Go EC Opens Two Formal Investigations Against Chipset Supplier Qualcomm