In 2018, the EU antitrust regulator slapped Qualcomm with a € 1 billion fine, accusing it of paying Apple for the use of Qualcomm modems instead of switching to competitors like Intel in the period from 2011 to 2016. Of course, the company appealed the fine and the European Court (EGC) quashed the fine, he reports Reuters.
“With today’s ruling, the Court annuls the Commission’s decision in its entirety. The Court is based, firstly, on the ascertainment of a series of procedural irregularities that have infringed on Qualcomm’s rights of defense and, secondly, on an analysis of the anti-competitive effects of incentive payments ». ruled the EGC, which is the second highest court in the European Union.
Things get more interesting further down in the press release (note: PDF): “… the Court notes that while the Commission concluded that the incentive payments had reduced Apple’s incentives to switch to competing suppliers to purchase LTE chipsets, the Commission’s decision shows that Apple had no technical alternatives to Qualcomm’s LTE chipsets. for most of its requirements during the period in question, ie that part corresponding, in essence, to the iPhones ”.
The Commission has the option of appealing to the Court of Justice of the EU, but first wants to carefully consider the implications of the CEG ruling.
Competition Commissioner Margrethe Vestager Leads Case Against Qualcomm (Image Credit)
There was a similar court case in the United States brought forward by the Federal Trade Commission. Initially, the FTC won, but the decision was overturned and eventually Qualcomm and Apple settled out of court.
Earlier this year, the court overturned a similar € 1.06 billion fine against Intel, accused of anti-competitive practices. The original fine was imposed in 2009, then in 2014 the EU lower court dismissed Intel’s appeal, but then the Court overturned that decision in 2017 until, at the end of January 2022, it overturned quite fine.
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