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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

  1. 2010s

    Icera rivalry in 3G chips

    UK-based Icera competed with Qualcomm in baseband processors until exiting the market.

  2. 2018

    EU predatory pricing fine

    Commission said Qualcomm sold chips below cost to two large customers to knock out Icera.

  3. 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

predatory pricingexclusivityabuse of dominance

Laws referenced

  • TFEU Article 102 — Art. 102 TFEU

Companies

Sources

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