Qualcomm’s Predatory Pricing Practices Face Justice: EU Court Slashes Fine to 238.7 Million Euros

The General Court of the European Union has largely confirmed a fine imposed on Qualcomm for its predatory pricing practices between 2009 and 2011. The company, a leading U.S. chipmaker, had been accused of selling its chipsets below cost to thwart British phone software maker Icera, now part of Nvidia Corp. The fine has been reduced to 238.7 million euros ($265.5 million) from the initial 242 million euros.

The European Commission imposed the fine in 2019, citing Qualcomm’s practice of predatory pricing as a means to exclude rivals from the chipset market. Qualcomm had argued that the 3G baseband chipsets in question accounted for only 0.7% of the Universal Mobile Telecommunications System (UMTS) market, making it impossible to exclude rivals. However, the court rejected this claim, finding that Qualcomm’s actions did indeed harm competitors.

The court’s ruling was not entirely unfavorable to Qualcomm, as it accepted one of the company’s pleas regarding the calculation of the fine. Qualcomm can appeal the decision to the EU Court of Justice, the highest court in the EU.

This is not the first time Qualcomm has faced antitrust scrutiny. In 2020, the same court threw out a 997 million euro fine imposed in 2018 for Qualcomm’s agreements with Apple to use only its chips in iPhones and iPads. The EU watchdog subsequently declined to appeal the judgment.

The case is T-671/19 Qualcomm v Commission (Qualcomm – predatory pricing).

The ruling sends a clear message that the EU will not tolerate predatory pricing practices that harm competition and consumers. As the tech industry continues to evolve, companies must ensure that their business practices are fair and transparent to avoid facing the consequences of antitrust fines and legal action.