The case dates back to 2015 when the European Union began to investigate the practices of Qualcomm who has received an exemplary fine of 1,000 million euros for paying Apple to be its exclusive supplier of network chips for the iPhone and other products.
The companies in this technological world may be confronted, as happens to Apple and Qualcomm now for the excessive royalties of the latter, but also have their scams between them.
On this occasion, the one who has lost out is the chip maker who has seen how he has just been fined a record 1,000 million euros – specifically 997 million – by the European Union for abuse of a dominant position. The EU considers proven that Qualcomm paid the company of the bitten apple to be the exclusive supplier of its chips for the iPhone but also for the iPads and Apple Watch.
Almost six years of “exclusivity” paid on the iPhone
The investigation started in 2015 but comes much earlier than before as it was when Brussels looked at Qualcomm’s conduct since he had suspected ” significant payments ” to a ” frontline manufacturer ” since 2011 to block competition and that will only use its processors.
As stated by Margrethe Vestager, European Competition Commissioner, Qualcomm illegally closed the LTE chip market to the competition for more than five years, which would obviously help solidify its position vis-à-vis the other companies in the market that was in a position unfair and unequal. “No rival could compete with Qualcomm, no matter how good their products were,” said Danish politics.
The internal documents, according to the authorities, show that Apple tried to entrust Intel with the manufacture of a part of its chipsets but the condition of Qualcomm’s exclusivity was an essential element that pushed Apple to wait for an agreement that dated end in 2013 but was extended until 2016.