EU Doesn’t Like Qualcomm Being Close With Apple! Fines 997 Million Euros
EU has apparently levied a file on Qualcomm for 997 million euros for making deals exclusively with tech giant Apple. The anti trust regulators made sure that they levy an amount up to $1.23 billion to Qualcomm for practicing a behavior that was not abiding by their rules. The payments, according to the regulators, were being made to Apple since 2011. The matter was taken into hands in 2015 and has now come to a conclusion that is not going to be liked by Qualcomm.
The reason Qualcomm was paying Apple was to make sure that the tech giant only uses its chips in its iPhones. We all know how many iPhones are produced every year so you can well imagine how much Qualcomm must have wanted to get this deal and exclusivity to itself. However, the EU was not fine with this and has therefore, levied a wholesome amount on them.
As their practice of doing this, Qualcomm was able to shutdown its competition for five years. It maintained market dominance because Apple was only using its chips and was being paid to do so. Therefore, billions of people were paying Apple so that they just don’t buy from another manufacturer. As a result of this behavior, Qualcomm was able to maintain superior position in the market and no rival could challenge its position. Moreover, customers as a result paid for the fact that they did not have any other options or access to new technologies because time and again, it would be Qualcomm’s chips in iPhone devices.
While Qualcomm made sure that it covers it ground for making sure it is the only superior authority in the market, their act has been caught by the regulators who have now fined almost 1 billion euros to Qualcomm. Qualcomm definitely must have made a lot of money in the process where it was the only one providing chips to Apple but still, a 1 billion fine is enough to send shivers on the land. It also seems that EU is absolutely not fine with Qualcomm and Apple’s partnerships!