EU to Fine Qualcomm Over Exclusivity Payments to Apple
January 24 2018 - 3:18AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS-- Qualcomm Inc. is set to be slapped with a European
Union antitrust fine Wednesday over payments it made to Apple Inc.
for exclusively using its chips in smartphones and other products,
people familiar with the matter said.
EU antitrust fines can reach as high as 10% of annual revenue,
though are usually much lower. Qualcomm brought in $22.3 billion in
revenue for fiscal 2017.
The EU had opened a probe into Qualcomm's conduct in 2015 over
concerns it had paid "significant amounts" to a major smartphone
and tablet manufacturer since 2011 on the condition that it use
exclusively Qualcomm's baseband chips.
That contract harmed competition and innovation in the chipset
market, the EU said at the time.
The fine follows a decision last week by the EU regulator to
clear Qualcomm's acquisition of NXP Semiconductors NV with
conditions.
The Financial Times was first to report that the fine would come
Wednesday.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
January 24, 2018 04:03 ET (09:03 GMT)
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