2018-01-17 05:30:00 Wed ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
European Union antitrust regulators impose a fine on Qualcomm for advancing its key exclusive microchip deal with Apple to block out rivals such as Intel and TSMC. The European Commission takes into account Qualcomm's multi-year dominance in the LTE microchip market with rapid mobile broadband connections. In recent times, Qualcomm attempts to force Apple and its Asian upstream suppliers to use its trademark microchips exclusively in return for lower licensing fees.
Qualcomm can thus unfairly cut out intense competition in the LTE chipset market. In fact, Qualcomm pays billions of U.S. dollars to Apple such that it would not buy from other microchip producers.
These payments represent not just price reductions, but the primary condition that Apple would exclusively use Qualcomm's baseband chipsets in all its iPhones and iPads. Several other smart phone rivals such as Lenovo, OPPO, Vivo, and Xiaomi express an active interest in buying $2 billion Qualcomm chipsets over 3 years. No microchip rivals would be able to effectively challenge Qualcomm in this particular market regardless of product quality improvements.
The European Commission thus has to penalize Qualcomm for its anti-competitive market behavior. This E.U. regulatory decision has deep economic implications for Apple and other mobile device suppliers and manufacturers worldwide.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-10-21 10:35:00 Monday ET

American state attorneys general begin bipartisan antitrust investigations into the market power and corporate behavior of central tech titans such as Apple
2017-09-13 10:35:00 Wednesday ET

CNBC reports the Top 5 features of Apple's iPhone X. This new product release can be the rising tide that lifts all boats in Apple's upstream value
2025-04-30 08:27:00 Wednesday ET

The multiple layers of the world cloud Internet help expand what can be made digitally viable from electric vehicles (EV) and virtual reality (VR) headsets
2020-08-12 07:25:00 Wednesday ET

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo. Jerry Porras, Stewart Emer
2019-06-30 12:37:00 Sunday ET

AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h
2018-10-09 08:40:00 Tuesday ET

The International Monetary Fund (IMF) appoints Harvard professor Gita Gopinath as its chief economist. Gopinath follows her PhD advisor and trailblazer Kenn