Qualcomm hit with antitrust case from European Commission

Qualcomm finding itself in more legal trouble? Say it ain't so! Sure enough, the chip maker is now facing even more heat as the European Commission "has launched formal antitrust proceedings" against it after "mobile phone manufacturers complained it charged far too much for vital technology licenses." The move had reportedly been expected for some time, and while the Commission noted that this would be considered "a matter of priority," no deadline was immediately set for a resolution. Apparently, Qualcomm feels that mobile phone makers were trying to "stifle the competition that it brought to the market," and while the probe could eventually be scrapped, the other outcomes are likely to involve Qualcomm coughing up some dough unless it proves that the allegations were without merit.

[E71 @ Oct 1st 2007 3:32PM]

The EU can suck it.

[blarvh @ Oct 1st 2007 3:57PM]

The mobile phone companies and Qualcomm should suck it, for wasting everyones money.

[xbit @ Oct 1st 2007 6:24PM]

Qualcomm can suck it for stifling competition and trying to defraud standards bodies.

Compare the US and Western Europe cell phone markets. Which has the most competition? Which has the cheapest cell phones? Which has the most advanced cell phones? Which has the highest penetration of cell phones? Which has the highest 3G coverage? Which market has the most involvement from Qualcomm?

[Andrew @ Oct 2nd 2007 2:04AM]

@xbit: you should have pointed out the obvious that the answer is in fact Europe/Japan. Some US Americans don't know what they are missing!

[Riemannian @ Oct 1st 2007 4:59PM]

If you Euros want to know the real reason electronics and other gadgets are usually 20% higher over there, look no further. I mean, it's Engadget, we all love to see competition and low prices - but there other producers on that side as well. How many anti-trust cases by the EU Commission within the last 6 weeks is this, all of them negative for tech companies? You think they don't pass these foreseen legal costs onto the consumer, ironically defeating the very purpose of such probes?

[L @ Oct 1st 2007 5:10PM]

If you really think that ~20% VAT in most European countries is in ANY relation to the "legal costs" of such anti-trust cases - well, then you just don't have a clue.

[John @ Oct 1st 2007 6:44PM]

I would love to see tech companies all jack up european prices until the EU stopped filing antitrust cases. I can't think of a single true international monopoly in existence today... which isn't to say that some people like Carlos 'Slim' don't have their own national monopolies

[Andrew @ Oct 2nd 2007 2:15AM]

Actually the 20% markup has to do with different *national* sales taxes and the vastly greater consumer protection rights. Take Norway where cellphones have a five (5) year legally mandated warranty! In Europe companies cannot limit their warranty through a contract like they do in the US. Not to mention the costs companies have to pay to give their employees and citizens free healthcare and welfare benefits.

The EU is working hard to ensure free competition through-out Europe for all! That means European companies are getting sued also, you just don't hear about them because there's no US interest in them!