The Court of Justice of the European Union has canceled the fine of almost one billion euros that Qualcomm received in 2018. The Court concluded that there were ‘procedural irregularities’ as a result of which the chip designer was unable to defend himself properly.
In 2018, the European Commission imposed a fine of 997 million euros on Qualcomm. The chip designer is said to have made unfair agreements with Apple between 2011 and 2016 about the use of its 4G modem chips. European Competition Commissioner Margrethe Vestager concluded that Qualcomm had excluded competitors from the market for five years as a result.
According to the General Court, which is part of the European Court of Justice, several procedural irregularities have arisen in the case that have affected Qualcomm’s defence. This also invalidates the European Commission’s analysis of the chipmaker’s abuse of power. the court concludes†
When compiling the file, the Commission failed, among other things, to record the exact content of all interviews, while this is mandatory. According to the court, this mainly concerns ‘meetings and conference calls with third parties’.
Qualcomm challenged the verdict and is now right. The General Court also questions the competitive analysis made, noting, among other things, that Apple had no technical alternative to Qualcomm’s 4G modems during the period. According to the ruling, the Commission has ‘failed to take into account all relevant factual circumstances’. Due to the ruling, Qualcomm does not have to pay the fine of almost one billion euros for the time being. The European Commission can still appeal the ruling.
The case in question, in which a new ruling has now been handed down, specifically concerns 4G modems. Qualcomm was also fined EUR 242 million by the EU in 2019 for selling 3G chipsets too cheaply. The European Commission also launched an investigation into Qualcomm in 2020 for abusing its market position with 5G modem chips. The outcome of that investigation is not yet known.
Apple iPhone 6 from 2014, with Qualcomm 4G modem