Qualcomm Inc. 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 Qualcomm was ordered to pay 997 million euros for thwarting rival suppliers to Apple Inc. The EU said Thursday’s fine was 1.27% of Qualcomm’s revenue last year and “aimed at deterring market players” from trying the same thing.
Qualcomm said in a statement it will appeal and “expose the meritless nature of this decision.” It said it plans to provide a financial guarantee instead of paying the fine, until the courts have ruled.
Last year Qualcomm was handed the EU’s fifth-largest antitrust penalty over payments to Apple that the EU said were an illegal ploy to ensure only its chips were used in iPhones and iPads. San Diego-based Qualcomm is challenging the fine at the EU courts.
MacDailyNews Take: EU antitrust regulators could have fined Qualcomm up to 10% of Qualcomm’s revenue last year. They should have done so to send as strong a message as possible to would-be extortionists and predatory pricers like Qualcomm.