EU Fines Qualcomm $272 Million for Pricing Chips Low to Knock Out a Competitor [Fortune]
NVIDIA Corporation (NVDA)
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Source: Fortune
Pinterest Qualcomm was fined 242 million euros ($272 million) by European Union antitrust regulators for deliberately pricing some chips so low they could eliminate a smaller rival. The penalty comes a year after Apple The Qualcomm investigation targeted 3G chips for internet mobile dongles sold between 2009 and 2011. Regulators said these were sold below cost to Huawei nologies and ZTE, "two strategically important customers," in order to push Icera, now owned by Nvidia, out of the market. "Icera was becoming a viable supplier of UMTS chipsets providing high data rate performance, thus posing a growing threat to Qualcomm’s chipset business," the EU said. Companies have complained about the slow pace of EU antitrust enforcement in fast-moving technology . Icera sought to draw in the EU by filing a complaint in 2010. It was sold to Nvidia a year later in 2011. The EU opened an investigation four years after that. Qualcomm said in a statement it will appeal and “expose the meritless nat
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