Qualcomm fined $1.2 billion for paying Apple to use its chips

European antitrust officials have slapped Qualcomm with a massive fine for paying Apple to use its chips in iPhones a...

Posted: Jan 24, 2018 3:07 PM
Updated: Jan 24, 2018 3:07 PM

European antitrust officials have slapped Qualcomm with a massive fine for paying Apple to use its chips in iPhones and iPads.

The European Commission, the executive arm of the European Union, ordered Qualcomm to pay -997 million ($1.2 billion) on Wednesday. It said the company had flouted EU regulations by paying billions to Apple not to use chips made by competitors.

Qualcomm said it "strongly disagrees" with the ruling, adding it planned to appeal to Europe's highest court.

The European Commission cited a 2011 agreement between the two companies, where Qualcomm pledged "significant payments" to Apple on the condition that iPhones and iPads would only carry its chips.

The agreement, extended in 2013 for three years, also made clear that the payments would stop if Apple released devices containing chips from Qualcomm rivals such as Intel. Apple would also have to give back a large part of previous payments, the Commission said in a statement.

Related: Global backlash spreads over Apple slowing down iPhones

"Qualcomm illegally shut out rivals from the market... for over five years," Margrethe Vestager, the European commissioner in charge of competition policy, said in the statement.

Don Rosenberg, executive vice president and general counsel of Qualcomm, said in a statement that the company was confident its agreement with Apple "did not violate EU competition rules or adversely affect market competition or European consumers."

Apple did not immediately respond to a request for comment.

Internal documents cited by the Commission show that Apple considered switching to Intel chips but decided against doing so until September 2016, when the agreement with Qualcomm was nearing its end.

"Qualcomm's behavior denied consumers and other companies more choice and innovation - and this in a sector with a huge demand and potential for innovative technologies," Vestager said. "This is illegal under EU antitrust rules and why we have taken today's decision."

Related: Qualcomm rejects $130 billion takeover bid

Other U.S. tech firms have been punished by European regulators.

Facebook was fined $122 million in May 2017 for misleading European officials about its takeover of WhatsApp, while Google was asked to shell out a record $2.7 billion in June for using its search engine to steer internet users towards its own shopping platform.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 730969

Reported Deaths: 13434
CountyCasesDeaths
Marion1000031743
Lake53771970
Allen40668678
St. Joseph35733552
Hamilton35629408
Elkhart28577442
Tippecanoe22402219
Vanderburgh22310397
Porter18776308
Johnson17970379
Hendricks17244315
Clark12985191
Madison12673339
Vigo12449247
LaPorte11928211
Monroe11893170
Delaware10696186
Howard9924216
Kosciusko9410117
Hancock8284141
Bartholomew8070156
Warrick7784155
Floyd7669178
Grant7060174
Wayne7051199
Boone6700101
Morgan6576139
Dubois6156117
Marshall6050111
Dearborn581378
Cass5808105
Henry5720103
Noble561384
Jackson501773
Shelby491996
Lawrence4546120
Harrison435872
Gibson435492
DeKalb428485
Clinton427453
Montgomery424189
Whitley396139
Huntington391980
Steuben387857
Miami381866
Knox371990
Jasper366047
Putnam360760
Wabash354179
Adams341354
Ripley339770
Jefferson330981
White314354
Daviess297399
Wells291581
Decatur285492
Fayette280762
Greene278985
Posey271533
LaGrange266770
Scott266354
Clay260247
Randolph240781
Washington240732
Spencer232131
Jennings230149
Starke216654
Fountain212346
Sullivan211942
Owen200256
Fulton195440
Jay195130
Carroll189320
Orange183654
Perry183037
Rush173425
Vermillion169143
Franklin168135
Tipton162845
Parke146316
Blackford134932
Pike134334
Pulaski116845
Newton107834
Brown102141
Crawford99814
Benton98614
Martin89115
Warren82115
Switzerland7918
Union71010
Ohio56811
Unassigned0416

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1085733

Reported Deaths: 19441
CountyCasesDeaths
Franklin1261201400
Cuyahoga1124072120
Hamilton801491206
Montgomery515591014
Summit47292946
Lucas42275788
Butler38396584
Stark32412907
Lorain25046481
Warren24313300
Mahoning21629588
Lake20725369
Clermont19803238
Delaware18537133
Licking16436212
Fairfield16230200
Trumbull16082468
Medina15309264
Greene15099244
Clark14017299
Wood13113189
Portage12890203
Allen11675232
Richland11382199
Miami10686217
Wayne8843211
Columbiana8816229
Muskingum8815133
Pickaway8582121
Marion8539135
Tuscarawas8487244
Erie7917154
Hancock6929127
Ross6858155
Ashtabula6830170
Geauga6697148
Scioto6417101
Belmont5920167
Union571048
Lawrence5560102
Jefferson5544151
Huron5439119
Darke5364123
Sandusky5359121
Seneca5290121
Athens520058
Washington5160109
Auglaize491984
Mercer480885
Shelby470093
Knox4495110
Madison436661
Putnam4287100
Fulton423969
Ashland423189
Defiance421097
Crawford3978107
Brown395057
Logan382376
Preble379898
Clinton372963
Ottawa367479
Highland355662
Williams340275
Champaign333458
Guernsey316253
Jackson312652
Perry295350
Morrow285639
Fayette282250
Hardin271464
Henry269366
Coshocton265357
Holmes2611101
Van Wert243763
Adams238552
Pike237734
Gallia235949
Wyandot231555
Hocking215462
Carroll191647
Paulding173340
Meigs144940
Noble133337
Monroe132342
Harrison108537
Morgan108523
Vinton83515
Unassigned02
Fort Wayne
Clear
45° wxIcon
Hi: 63° Lo: 36°
Feels Like: 45°
Angola
Clear
45° wxIcon
Hi: 62° Lo: 34°
Feels Like: 45°
Huntington
Partly Cloudy
46° wxIcon
Hi: 61° Lo: 35°
Feels Like: 46°
Decatur
Clear
45° wxIcon
Hi: 62° Lo: 36°
Feels Like: 45°
Van Wert
Clear
42° wxIcon
Hi: 65° Lo: 35°
Feels Like: 42°
High pressure will pave the way to another mostly sunny and pleasant day.
WFFT Radar
WFFT Temperatures
WFFT National

Community Events