European Union: Qualcomm filed lawsuit challenging European Commission abuse of dominance decision

On 1 October 2019, Qualcomm filed an appeal against the European Commission contesting its decision imposing a fine on Qualcomm for alleged anti-competitive practices within the semiconductor market. The Commission found that Qualcomm had abused its dominant position in the UMTS chipset market by supplying certain chipsets to key customers below cost price, with the intention of eliminating its competitor company Icera. The Commission had set a fine of EUR 242'042'000. In its action to the Court, Qualcomm argued, among other points, that the decision is marred by significant procedural irregularities that undermined its defence rights and that the Commission’s market definition and finding of dominance are flawed, and that the legal standards applied were incorrect. Qualcomm disputed the predation theory outlined by the Commission, claiming it is unsupported by evidence and that the analysis of pricing and non-recurring engineering expenses is erroneous. Qualcomm also challenged the decision’s conclusions on consumer harm, market foreclosure, and the justification for its pricing strategies. Qualcomm sought annulment of the European Commission’s decision and reduce or annul the imposed fine.