- Thomson Reuters
- The European Commission is asking Qualcomm to pay a massive $1.2 billion fine.
- Qualcomm shares are slipping on the news.
- Watch the company trade in real time here.
Shares were down 1.68% to $67.19 in early trading Wednesday.
From 2011 to 2016, Qualcomm paid Apple to exclusively use its chips in Apple’s products, a practice the European Commission frowned upon. “They illegally shut out rivals from market of LTE baseband chipsets for over 5 years. Misuse of dominant position. Don’t,” Margrethe Vestager, the European Commissioner for Competition, tweeted about the ruling.
The $1.2 billion fine is not the first blow Vestager and her commission have given the tech industry. The commission forced Google to pay the largest ever fine of $2.7 billion for unfair practices around its comparison shopping product.
The commission has also ruled against Intel and is currently investigating other cases against both Google and Qualcomm. Qualcomm said it would appeal the most recent decision.
Qualcomm is currently locked in a giant legal battle with Apple over the alleged misuse of a dominant market position. The two companies have been trading legal blows for the past year.
Qualcomm is also currently fending off a hostile takeover bid from rival Broadcom, which Qualcomm says is trying to take advantage of temporary setbacks at the company.
Qualcomm is up 3.62% this year.
- Markets isider