Qualcomm has been hit with a massive EUR997 million ($1.23 billion) antitrust fine in the European Union, for illegally paying billions of dollars to Apple to make sure that its components were used in iPhones and iPads.

The payoffs ensured that rival manufacturers of LTE baseband chipsets–the components that let mobile devices connect to cellular networks in order to provide internet connectivity–had no chance of getting into Apple’s devices for half a decade.

Read: What’s Behind Qualcomm’s Huge New Profit Promise

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appears to have been the main victim of this secretive tie-up. Because of the severity of the infringement, the European Commission opted to fine Qualcomm 4.9% of its 2017 revenues.

“Qualcomm illegally shut out rivals from the market for LTE baseband chipsets for over five years, thereby cementing its market dominance,” said Margrethe Vestager, the Commission’s competition chief. “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.”

“This meant that no rival could effectively challenge Qualcomm in this market, no matter how good their products were. Qualcomm’s behaviour denied consumers and other companies more choice …read more

Source:: Fortune.com – Tech

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