Qualcomm is being fined €242 million for 'predatory pricing'
What you need to know
- The European Commission is issuing a fine against Qualcomm for €242 million.
- Qualcomm's being accused of "predatory pricing" for its 3G baseband chips.
- The EU says Qualcomm's goal was to push competitors out of the market.
Qualcomm's found itself in some hot water. On July 17, the European Commission issued a press release announcing that it has fined the chip-maker a whopping €242 million. According to the EU, the fine comes as a result of Qualcomm under-cutting its competition with 3G baseband chips with the sole intent of pushing competitors out of the market.
Per EU Commissioner, Margrethe Vestager:
Between the years of 2009 and 2011, Qualcomm had a global market share of around 60% for 3G chips. Not only is that 60% a big number on its own, but it's also around three times the market share that was held by Qualcomm's biggest competitor at the time.
The EU's press release continues with:
While having a dominant position in a market isn't illegal, Qualcomm is reported to have been using "predatory pricing" during that 2009 and 2011 timeframe. Specifically, the EU notes that it sold chips to both Huawei and ZTE below cost to eat up more of the market and sell at prices its competitors couldn't afford.
The €242 million fine is not a small number, but compared to Qualcomm's 2018 turnover, only reflects 1.27% of it.
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Joe Maring was a Senior Editor for Android Central between 2017 and 2021. You can reach him on Twitter at @JoeMaring1.