The European Commission today announced a $1.23 billion (€997 million) fine for Qualcomm after the company paid Apple to use only its chipsets in the latest generations of iPhones.
The fine, which under EU competition rules could reach 10% of the company's revenue in the previous year, represents just 4.9% of Qualcomm's turnover in 2017.
“Qualcomm paid billions of dollars to a key customer, Apple, so that it would not buy from rivals. These payments were not just price cuts – they were made on the condition that Apple would use exclusively Qualcomm chipsets in all iPhones and iPads ,” European Competition Commission Commissioner Margrethe Vestager said today.
The European Commission has already confirmed that Apple does not face any fines or penalties following the ruling against Qualcomm.
The chipmaker has its own legal battle against Apple, after Cupertino filed a lawsuit in January 2017 over alleged unfair licensing terms, seeking $1 billion in damages and asking for a lower royalty for using Qualcomm chipsets in its devices.
On the other hand, Qualcomm filed its own lawsuit against Apple and even sought a ban on the iPhone in the United States, claiming that it infringes on several of the patents it holds.
Since then, the two companies have accused each other of patent infringement on several occasions, while Qualcomm itself has taken legal action against other illegal practices by a number of Apple suppliers.
Hon Hai Precision Industry (Foxconn's parent company), Wistron, Compal Electronics and Pegatron, all Apple suppliers, said Qualcomm was trying to charge them more than the agreed licensing fees.
Qualcomm has faced legal difficulties in other major markets, including China, where it was fined $1 billion over antitrust issues. In South Korea, it was fined $850 million for violating competition rules and creating a monopoly in the local market.
