New victim: The European Commission accused Qualcomm of violating antitrust laws
On Tuesday, the European Commission filed charges of violating antitrust laws to the world's largest supplier of microchips. The European Commission believes that Qualcomm has paid its main client for using only its chips. In addition, according to the regulator, Qualcomm tried to force competing company Icera out of the market, selling its products at a price below cost.
“Qualcomm’s actions could have driven competitors out of the way or prevented them from competing,” said Margrethe Vestager, competition commissioner.
Qualcomm faces a fine for each case of violation of the law in the amount of up to 10% of its annual revenue (in 2015 fiscal year, Qualcomm revenues amounted to about $ 25 billion). In addition, regulators may require Qualcomm to change the way they do business.
')
“We hope to prove that the competition in the chip market for wireless communications remains quite acute and that in its sales policy, Qualcomm always abides by EU competition laws,” said Qualcomm general counsel Don Rosenberg.
The European Commission gave the American corporation three months to prepare a response on the bribery charges and four months to prepare a response on the allegations of unfair pricing, Reuters reports .
Qualcomm may also request special hearings at which she could explain her position to the regulators.
On November 18, Qualcomm received a report from the Korea Fair Trade Commission ( KFTC ) and accusations of violating South Korean antitrust laws. In particular, the report states that the practice of licensing Qualcomm patents violates the laws of the country, since the company's patents concern only the hardware component and force partners to license other intellectual property illegally.
Qualcomm does not admit his guilt. The company believes that the accusations in the KFTC report are not supported by the facts, and the practice of licensing is no different from the business principles of other companies, it is the norm and has not changed for two decades.
Last year, an anti-monopoly investigation into Qualcomm's activities in China began, which ended for the giant by paying a huge fine of almost $ 1 billion.
Qualcomm receives most of its profits through licensing fees for using its patents. It is this side of the company's business that attracts increased attention from antimonopoly authorities in various countries, including the United States and China.
The official antitrust investigation in the EU was launched five months ago on a complaint filed in 2010 by the British company Icera.
The second charge concerns the events from 2009 to 2011: according to Icera, Qualcomm offered its chips to two clients of a British company at a price below the cost price, thus ousting the competitor from the market.
Qualcomm is not the first large American corporation to be investigated by the European Commission. In April, Vestager first accused Google of violating competition laws, and Amazon.com , Apple , Starbucks and McDonald's tax practices are also under investigation.
“Qualcomm’s actions could have driven competitors out of the way or prevented them from competing,” said Margrethe Vestager, competition commissioner.
Qualcomm faces a fine for each case of violation of the law in the amount of up to 10% of its annual revenue (in 2015 fiscal year, Qualcomm revenues amounted to about $ 25 billion). In addition, regulators may require Qualcomm to change the way they do business.
')
“We hope to prove that the competition in the chip market for wireless communications remains quite acute and that in its sales policy, Qualcomm always abides by EU competition laws,” said Qualcomm general counsel Don Rosenberg.
The European Commission gave the American corporation three months to prepare a response on the bribery charges and four months to prepare a response on the allegations of unfair pricing, Reuters reports .
Qualcomm may also request special hearings at which she could explain her position to the regulators.
On November 18, Qualcomm received a report from the Korea Fair Trade Commission ( KFTC ) and accusations of violating South Korean antitrust laws. In particular, the report states that the practice of licensing Qualcomm patents violates the laws of the country, since the company's patents concern only the hardware component and force partners to license other intellectual property illegally.
Qualcomm does not admit his guilt. The company believes that the accusations in the KFTC report are not supported by the facts, and the practice of licensing is no different from the business principles of other companies, it is the norm and has not changed for two decades.
Last year, an anti-monopoly investigation into Qualcomm's activities in China began, which ended for the giant by paying a huge fine of almost $ 1 billion.
Qualcomm receives most of its profits through licensing fees for using its patents. It is this side of the company's business that attracts increased attention from antimonopoly authorities in various countries, including the United States and China.
The official antitrust investigation in the EU was launched five months ago on a complaint filed in 2010 by the British company Icera.
The second charge concerns the events from 2009 to 2011: according to Icera, Qualcomm offered its chips to two clients of a British company at a price below the cost price, thus ousting the competitor from the market.
Qualcomm is not the first large American corporation to be investigated by the European Commission. In April, Vestager first accused Google of violating competition laws, and Amazon.com , Apple , Starbucks and McDonald's tax practices are also under investigation.
Source: https://habr.com/ru/post/297138/
All Articles