🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Exclusive: Chipmaker Qualcomm may face EU antitrust probe

Published 08/26/2014, 09:38 AM
© Reuters Visitors walk past the Qualcomm stand at the Mobile World Congress in Barcelona

By Foo Yun Chee

BRUSSELS (Reuters) - Qualcomm, the world's No. 1 mobile chipmaker, may face a European antitrust investigation in relation to a four-year-old complaint by a subsidiary of rival Nvidia Corp, three people familiar with the matter said on Tuesday.

An EU probe would come at an awkward time for Qualcomm, which is seeking to end an investigation by China's pricing regulator into monopoly practices.

British cellphone chipmaker Icera, acquired by Nvidia in 2011, took its grievances to the European Commission in June 2010, accusing Qualcomm of anti-competitive behaviour.

Details of the complaint were never made public. But another person familiar with the issue said Icera had accused Qualcomm of using patent-related incentives and exclusionary pricing of chipsets to discourage customers from doing business with Icera.

Until now, the issue appeared to have faded from the Commission's agenda.

But regulators decided to fast-track the case after Europe's second-highest court in June upheld a record 1.1 billion euro EU fine against U.S. chipmaker Intel for abuse of its dominant market position, according to one of the sources.

It is not unusual for the EU competition authority to take several years to build a case before opening an investigation.

"The Commission may open a case after the summer," said the source, who declined to be named because of the sensitivity of the matter.

The Commission's spokesman for competition policy, Antoine Colombani, declined to comment, as did Qualcomm. Companies can be fined as much as 10 percent of their global revenues for breaching EU antitrust rules.

© Reuters. Visitors walk past the Qualcomm stand at the Mobile World Congress in Barcelona

In 2010, the EU competition authority scrapped a four-year probe into Qualcomm after Swedish mobile telecom gear maker Ericsson and U.S. rival Texas Instruments withdrew their objections against the company.

(Reporting by Foo Yun Chee; editing by Tom Pfeiffer)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.