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Qualcomm under investigation for mobile chip dominance

We all love Qualcomm processors, and so do the manufacturers. And while Qualcomm is enjoying a good hold over almost the entire mobile industry, the regulators are in doubt as to whether the US company has achieved its dominance through fair practices. Or is there something else to the story?

The European Commission (EC) has now opened the case. They announced today that they have opened two antitrust probes into the company.

Previously, Qualcomm had paid $975 million (£625 million) to escape an investigation for its monopolistic practices in China. But now that the EC has already opened two antitrust probes, we doubt that the company will be able to do the same again.

In one investigation, according to the EC, it will be asked if the company had offered any “financial incentives” to their customers for ordering those wireless chipsets. And the second investigation will be focused on whether or not, Qualcomm had sold their 3G chips well below the cost price so that the competitors could not match it, or even get close to it.

Apple and Amazon have also recently been accused of negotiating favourable tax deals with Ireland and Luxemborg, respectively. And today’s EC announcement, is the Commission’s latest investigation into how different tech companies should be operating in the European continent.

Though Qualcomm will be forced to cooperate and comply with EC’s investigation, and the antitrust probes can take years. And if the mighty Qualcomm is found guilty, they could face fines of up to 10 per cent of their yearly revenue, or they might even be forced to amend the way they do business across Europe.