European Union: Issued European Commission ruling in investigation into Qualcomm for alleged abuse of market dominance

On 18 July 2019, the European Commission issued a ruling with a fine of EUR 242 million against Qualcomm for abuse of its dominant position in the global UMTS chipset market from 1 July 2009 to 30 June 2011. The ruling highlighted that Qualcomm supplied certain chipsets below cost to Huawei and ZTE with the intention of eliminating its main competitor, Icera, a smaller firm developing advanced UMTS chipsets. It was also highlighted that Qualcomm's actions, including offering price concessions on multiple chipsets, were designed to prevent Icera from gaining the scale necessary to challenge its market dominance, ultimately reducing competition and consumer choice. The Commission rejected Qualcomm’s justifications for these practices, concluding that the company's conduct had a significant effect on trade within the European Economic Area. As a result, Qualcomm was fined and required to refrain from repeating the conduct.