Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Qualcomm under investigation by EC for possible abuse of market position, (Jul 16, 2015)
Organizations Mentioned:Qualcomm Inc.
By Jody Coultas, J.D.
The European Commission (EC) is investigating possible abusive business practices by Qualcomm Inc. in the field of baseband chipsets. Qualcomm is the world's largest supplier of baseband chipsets, which process communications functions in smartphones, tablets, and other mobile broadband devices.
The first antitrust investigation focuses on Qualcomm's conditions related to the supply of certain chipsets that comply with 3G (UMTS) and 4G (LTE) standards and are used to deliver cellular mobile connectivity in smartphones and tablets. In particular, the Commission will investigate whether Qualcomm has granted financial incentives to its customers on condition that they purchase all or a significant part of their baseband chipsets requirements from Qualcomm, and whether those incentives hinder the ability of rivals to compete in the market.
A second investigation opened by the EC concerns Qualcomm's pricing of certain chipsets that comply with 3G (UMTS) standards. The Commission will be investigating whether Qualcomm engaged in predatory pricing by selling these chipsets at prices below costs in order to drive its competition out of the market.
Companies: Qualcomm Inc.
News: Antitrust