The European Commission has opened two formal antitrust investigations into possible abusive behaviour by Qualcomm in market for baseband chipsets for mobile devices. The first will examine whether Qualcomm breached EU antitrust rules that prohibit the abuse of a dominant market position by offering financial incentives to customers on condition that they buy the chipsets exclusively or almost exclusively from Qualcomm. Qualcomm is the world's largest supplier of baseband chipsets. The second will look into whether Qualcomm engaged in 'predatory pricing' by charging prices below costs with a view to forcing its competition out of the market.
This is the second time the EC looks at competition complaints about Qualcomm, after dropping in 2009 a four-year investigation into the US-based company's licensing practices. That time competitors withdrew their complaints, after Qualcomm changed some of its practices following action by Korean and Japanese regulators. More recently the company settled a major competition probe in China.
Qualcomm said it was "disappointed" that the EC had taken the next step in its proceedings, while noting that this "represents neither an expression by the Commission on the merits of the case nor an accusation against the company". Qualcomm said it has been cooperating with the EC and will continue to do so, but believes "that any concerns are without merit".
In particular, the Commission will investigate whether Qualcomm has granted payments, rebates or other financial incentives to its customers on condition that they purchase all or a significant part of their chipsets for 3G and 4G mobile devices from Qualcomm, and whether any such behaviour might hinder the ability of rivals to compete. The second investigation concerns Qualcomm's pricing practices for chipsets that comply with 3G standards. In particular, the Commission will be assessing whether Qualcomm has engaged in "predatory pricing" by selling these chipsets at prices below costs, with the intention of hindering its competition from remaining in the market and competing with Qualcomm.The Commission will now gather further information on the case before deciding whether to bring formal charges against Qualcomm. There is no deadline for completing its investigation.
