EU · fined · ~8 min read
Qualcomm baseband chipsets (EU)
2015–2018 · UMTS baseband chipsets, mobile device semiconductors
Qualcomm makes chips that connect phones to cell networks. Europe fined it nearly €1 billion for selling chips below cost to two big customers to crush a smaller rival called Icera. Unlike the US FTC case Qualcomm won, Europe went after predatory pricing. But in 2022 an EU court canceled the fine over procedural mistakes—another reminder that antitrust wins can be reversed.
The story
Baseband chips are essential modems inside smartphones. Qualcomm held strong share in 3G-era chipsets.
Icera offered alternative designs; regulators claimed Qualcomm targeted it with artificially low prices to major OEMs.
Predatory pricing cases require proving below-cost sales and ability to recoup losses later—a high bar the Commission thought it met.
Appeals focused on whether Qualcomm received a fair chance to review evidence, leading to annulment without clearing all conduct questions.
Why it matters
Chip competition affects device costs and innovation in mobile networks.
Contrasts with US Qualcomm outcome—jurisdiction matters enormously.
Procedural rigor can defeat substantive enforcement even in high-profile cases.
What was claimed
Qualcomm dominated UMTS baseband chipsets.
Below-cost sales to Huawei and ZTE excluded Icera anti-competitively.
Qualcomm could recoup losses after eliminating the rival.
The other side
Qualcomm denied selling below cost and said competition remained vigorous.
It argued Icera failed for business reasons unrelated to pricing.
Qualcomm challenged both EU chip and separate EU patent royalty cases.
What it means for you
Modem chip rivalry influences phone features and prices over time.
EU and US enforcers can reach opposite conclusions on the same company.
Annulment does not automatically legalize contested pricing—watch for refiling.
Bottom line
EU Qualcomm chip enforcement mirrored US battles but used predatory pricing theory—yet the 2018 fine fell on procedural appeal, leaving the story legally unsettled.
Timeline
2010s
Icera rivalry in 3G chips
UK-based Icera competed with Qualcomm in baseband processors until exiting the market.
2018
EU predatory pricing fine
Commission said Qualcomm sold chips below cost to two large customers to knock out Icera.
2022
Fine annulled on procedure
Courts voided the decision for inadequate hearing on certain evidence, not necessarily rejecting predatory pricing theory.
Key dates
- Statement of Objections
- December 2015
- Fine imposed
- January 24, 2018
- General Court annulled
- June 2022
Formal snapshot
Summary: The European Commission fined Qualcomm for predatory pricing of UMTS baseband chipsets paid to Huawei and ZTE to eliminate Icera, a rival chipset supplier.
Regulator / plaintiff argument: Below-cost pricing targeted a specific competitor to protect Qualcomm's dominance in 3G baseband chips, contrary to Article 102 TFEU.
Outcome: €997 million fine in 2018; General Court annulled in 2022 for procedural errors; Commission considering next steps.
Remedies: Original decision required cessation of predatory pricing strategy; annulment vacated fine pending potential re-adoption.
Conduct tags
Laws referenced
- TFEU Article 102 — Art. 102 TFEU
Companies
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