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Qualcomm Fined EUR 997 Mln For Breach Of EU Antitrust Rules - Quick Facts

European Commission announced it has fined Qualcomm (QCOM) 997 million euros for abusing its market dominance in LTE baseband chipsets. Qualcomm prevented rivals from competing in the market by making significant payments to a key customer on condition it would not buy from rivals which is illegal under EU antitrust rules. The Commission found that both consumers and competition have suffered as a result of Qualcomm's conduct. The fine represents 4.9% of Qualcomm's turnover in 2017. The Commission has also ordered Qualcomm to not engage in such practices in the future.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Qualcomm illegally shut out rivals from the market for LTE baseband chipsets for over five years, thereby cementing its market dominance. Qualcomm paid billions of US Dollars to a key customer, Apple, so that it would not buy from rivals. These payments were not just reductions in price - they were made on the condition that Apple would exclusively use Qualcomm's baseband chipsets in all its iPhones and iPads."

In 2011, Qualcomm signed an agreement with Apple, committing to make significant payments to Apple on condition that the company would exclusively use Qualcomm chipsets in its "iPhone" and "iPad" devices. In 2013, the term of the agreement was extended to the end of 2016.

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