The Long and Short: Qualcomm fined 1.2 billion dollars by EU

The Long and Short: Qualcomm fined 1.2 billion dollars by EU

€997 million euros.  That’s quite a lot of money.

The Long:
Qualcomm fined €997 million euros by the European Union for a series of deals with Apple.
Qualcomm has been accused of paying billions of dollars to Apple between 2011 and 2016.
These payments encouraged Apple to only use Qualcomm’s 4G modems in many territories.
It wouldn’t have mattered if a rival such as Intel had a superior product.  The alleged payments made it too expensive to switch. This made the deals illegal under EU anti-trust laws.
The EU said the fine was 4.9 percent of Qualcomm’s 2017 revenue.  That’s a lot of money gone for a company as big as Qualcomm and a big warning to other chipmakers to not attempt the same business practices.

Its going to be a tough year for Qualcomm with growing competition from Intel for mobile modems. However, the company’s Snapdragon chips are still in leading phones from Google and Samsung so they will undoubtedly survive.

Qualcomm chips are in many popular phones

The short:

Mobile phone chip maker, Qualcomm, fined for illegally paying Apple billions to keep using their chips.  Europe fines the chip maker near one billion euros.  That’s a lot of money, and their rivals sense an opportunity.

One billion dollarydoos!!

Do you like tech news on geeknosh?  Let us know on facebook and twitter.

Geeknosh acknowledges the traditional custodians of Australia and what the date January 26 means to them.