QUALCOMM, Inc. (NASDAQ:QCOM) Likely To Pay Massive Fines in the EU
QUALCOMM, Inc. (NASDAQ:QCOM) may have to pay daily fines of up to $665,000 to the European Union after losing a court bid aimed at blocking the EU from accessing its sales data for an antitrust probe.
Qualcomm Inc must comply with the ruling by the EU General Court, which requires the company to provide detailed sales information to EU regulators. The company might opt to appeal the ruling, but it has to comply immediately as the European Commission’s June 30 deadline has already passed.
Qualcomm might be liable to fines in the range of millions if it keeps refusing to provide regulators with the required data. EU regulators are in the final stages of an investigation into the company’s predatory pricing of chipsets.
The company is also fighting a court battle with Apple Inc. (NASDAQ:AAPL), which filed a suit earlier this year claiming that the chipset maker was using its dominant market position to demand unfair royalties. Qualcomm recently filed a suit against Apple Inc claiming patent infringement by Apple when manufacturing iPhones that do not use Qualcomm chipsets.
Qualcomm Inc’s CEO, Steve Mollenkopf, has stated that he expects the company’s legal battles with Apple to be settled out of court.
The company is facing two antitrust investigations in the EU, one that relates to the company’s acquisition of NXP Semiconductors NV (NASDAQ:NXPI) for $47 billion. The company is also being investigated for selling internet dongle chipsets at below-cost between 2009 and 2011 in order to undercut Icera, a competitor.
The EU is also investigating whether Qualcomm paid Apple to use only Qualcomm chipsets in its devices.
Ahead of earnings, Stock Traders Daily has provided real time trading reports that will allow you to understand where we think specific stocks are going to go before earnings are released. As a free trial member, you will have unlimited access to over 1300 real time stock trading reports, including QCOM.