Qualcomm, currently one of the leading manufacturers of semiconductors for smartphones, has been receiving various charges and fines for years. Specifically, between Manzana Yes Qualcomm there were legal battles which started in 2017 and later in 2018 Qualcomm demanded exclusivity of its chips from Apple where the European Court fined the former 997 million euros without giving him the reason. Now, as of June 15, 2022, Qualcomm has been confirmed to have won the antitrust battle, thanks in part to Apple avoiding paying said figure.
Today ends a legal battle between Qualcomm, the EU and Apple that has accompanied us for years. Starting in 2017, the two companies began breaking off a supposed friendship that they had had for a long time. And it is that Qualcomm collaborated with Apple, manufacturing chips for its iPhones, while Apple paid it for its services. However, there was accusations both parties for royalties, high-priced license sales and patent infringement.
Qualcomm and Apple have already had years of legal battles behind them
The teamwork of these two companies has gone through fortuitous moments over the years. In most of the cases, disputes they brought with them large economic sums and, in the worst case, loss of reputation. However, in the past, Apple and Qualcomm had a “good relationship”, but for about 5 years now, it’s been quite the opposite.
In 2017, Apple announced that it was suspending payments to Qualcomm for licenses related to iPhone. It was a blow for the semiconductor manufacturer, which agreed to offer a five-year exclusivity agreement and a price reduction on its licenses. However, FTC intervened and Apple retaliated by suing Qualcomm again.
So we have other cases like in March 2019, where Apple was guilty of infringing a patent of Qualcommprohibiting the sale of iPhone Made in China and imported to USA with proprietary technology. Now on to the current affairs whistleblower, where its troubled past led to Qualcomm emerging as the winner this time.
Qualcomm wins EU-imposed antitrust lawsuit
The dispute concerning this news is none other than that imposed in 2018 by the European Commission to Qualcomm itself for abuse of power in the chipset market. This would then be an antitrust complaint against Qualcomm, demanding apple exclusive in exchange for a significant financial contribution.
According to the European Commission, Qualcomm paid billions to Apple Come in 2011 and 2016 only use their chips in their iPhones and iPads. With this, he wanted to be able to compete against his main rival, Intel, and thus take a large share of the market. This fine was imposed by Margrethe Vestagerthe EU’s antitrust chief and, as we predicted, she lost.
“A series of procedural irregularities affected Qualcomm’s right of defense and invalidated the Commission’s analysis of the conduct attributed to Qualcomm,” the judges said.
“The Commission did not provide analysis to support findings that the payments in question had in fact reduced Apple’s incentives to switch to Qualcomm’s competitors to source LTE chipsets for certain iPad models. which would be released in 2014 and 2015,” they said. said.
It would be the second loss for Vestager, being the first there is 12 years when it lost the €1,060 million fine against Intel for taking advantage of rival AMD. However, Vestager does not stop, since on September 14 of this year he will have a new trial to attend. The challenge of Google before an antitrust fine of €4.34 billion for using its Android operating system to take advantage of its rivals.