Qualcomm wins fight against $1 billion EU antitrust fine
Qualcomm, the U.S. chipmaker, successfully overturned a 997 million euro ($1.05 billion) fine imposed by EU antitrust regulators after a four-year legal battle. This marks a significant setback for EU antitrust chief Margrethe Vestager’s efforts to regulate Big Tech. In 2018, the European Commission alleged that Qualcomm made substantial payments to Apple between 2011 and 2016, incentivizing the exclusive use of Qualcomm chips in iPhones and iPads to stifle competitors like Intel Corp.
The General Court, Europe’s second-highest court, annulled the EU’s decision, criticizing the competition enforcer’s handling of the case and citing procedural irregularities that impacted Qualcomm’s defense rights. Judges argued that the Commission failed to provide a convincing analysis supporting the claim that the payments actually deterred Apple from considering alternatives to Qualcomm’s chips for certain iPad models in 2014 and 2015.
While the EU competition enforcer can appeal to the EU Court of Justice (CJEU), the highest court in Europe, Qualcomm’s victory questions the Commission’s approach to antitrust cases. The Commission, expressing the intention to carefully review the judgment and assess its implications, may consider further steps.
This marks another blow for Vestager, who previously faced a setback in January when the court rejected a 1.06 billion euro fine on Intel from 12 years ago for anti-competitive practices against Advanced Micro Devices. Vestager faces another significant challenge on September 14, with the General Court set to rule on Google’s appeal against a record 4.34 billion euro antitrust fine for exploiting its Android mobile operating system to marginalize competitors.