The European competition commission has fined Qualcomm almost $1 billion for paying Apple to use its chips exclusively in the iPhone and iPad.
The deal was struck in 2011 until the end of 2016, and meant Apple would need to repay Qualcomm if it decided to use a rival’s chipsets.
The commission found the deal blocked Qualcomm’s competitors from doing business with Apple and stifled innovation.
The European Union has slapped a €997 million (£873 million, $1.2 billion) fine on Qualcomm for paying Apple to use its chips exclusively in the iPhone and the iPad.
The EU’s competition watchdog ruled that the chipmaker had taken advantage of and then cemented its dominant position when it agreed to pay Apple from 2011 to use its chips exclusively.
Competition Commissioner Margrethe Vestager said: “Qualcomm illegally shut out rivals from the market for LTE baseband chipsets for over five years, thereby cementing its market dominance.
“Qualcomm paid billions of US dollars to a key customer, Apple, so that it would not buy from rivals. These payments were not just reductions in price — they were made on the condition that Apple would exclusively use Qualcomm’s baseband chipsets in all its iPhones and iPads.”
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Source:: Businessinsider – Technology