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EU Fines Qualcomm $1.2 Billion for Paying Apple To Use Its Microchips (apnews.com)

Posted by msmash on from the not-in-my-house dept.

The European Union on Wednesday slapped a $1.23 billion fine on U.S. chipmaker Qualcomm for abusing its market dominance in the lucrative sector of components in smartphones and tablets for half a decade. From a report: EU Commissioner Margrethe Vestager said that San Diego-based Qualcomm "illegally shut out rivals from the market" for more than five years by paying key customer Apple to not use chips made by Qualcomm's rivals. Vestager said Qualcomm paid "billions of dollars" to Apple and in the process helped establish itself as the dominant force.

2 of 112 comments (clear)

  1. Apple is complicit here by JoeyRox · · Score: 5, Insightful

    It was in Qualcomm's interest to pay Apple billions because it obviously served to discourage the development of a competing designs by Qualcomm's competitors.

    But it also served Apple's interests because getting such good terms meant they would get a parts-cost advantage vs all their smartphone competitors while at the same time assuring those competitors would not have a lower-cost alternative available to them from a Qualcomm competitor.

    Monopolistic synergy.

  2. Re:What is wrong with this? by ReeceTarbert · · Score: 4, Insightful

    I'm sorry, but I'm really struggling to figure out how this is wrong.

    What part of "paying key customer Apple to not use chips made by Qualcomm's rivals" you didn't get?

    Hint: it's not about "discounts" and it's not about beating the competition with a better product; it's about abusing your market dominance to prevent rivals from even competing in the market.

    Or is competition good only when it fits your narrative?

    RT.