E.U. antitrust regulators impose a fine on Qualcomm for advancing its exclusive microchip deal with Apple.

Fiona Sydney

2018-01-17 05:30:00 Wed ET

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.

Blog+More

Sprint and T-Mobile propose a major merger in order to better compete with AT&T and Verizon.

Joseph Corr

2018-05-03 07:34:00 Thursday ET

Sprint and T-Mobile propose a major merger in order to better compete with AT&T and Verizon.

Sprint and T-Mobile propose a major merger in order to better compete with AT&T and Verizon. This mega merger is worth $26.5 billion and involves an all

+See More

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal.

Charlene Vos

2019-01-27 12:39:00 Sunday ET

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal.

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal. British Parliament rejects the M

+See More

Central banks learn to weigh the monetary policy trade-offs between output and inflation expectations and macro-financial stress conditions.

Becky Berkman

2026-01-31 10:31:00 Saturday ET

Central banks learn to weigh the monetary policy trade-offs between output and inflation expectations and macro-financial stress conditions.

  In recent years, several central banks conduct, assess, and discuss the core lessons, rules, and challenges from their monetary policy framework r

+See More

Snap cannot keep up with the Kardashians because its stock loses $1 billion market value after Kylie Jenner tweets about her decision to leave Snapchat.

Monica McNeil

2018-02-19 08:39:00 Monday ET

Snap cannot keep up with the Kardashians because its stock loses $1 billion market value after Kylie Jenner tweets about her decision to leave Snapchat.

Snap cannot keep up with the Kardashians because its stock loses market value 7% or $1 billion after Kylie Jenner tweets about her decision to leave Snapcha

+See More

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.

Andy Yeh Alpha

2020-02-02 10:31:00 Sunday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement

+See More

The U.S. stock market delivers a hefty long-term average return of 11% per annum.

Peter Prince

2017-03-09 05:32:00 Thursday ET

The U.S. stock market delivers a hefty long-term average return of 11% per annum.

From 1927 to 2017, the U.S. stock market has delivered a hefty average return of about 11% per annum. The U.S. average stock market return is high in stark

+See More