The European Commission this week fined U.S. chipset giant Qualcomm $271 million, alleging it forced competitor Icera out of the 3G baseband market by selling products below cost. Icera, based in the U.K., was acquired by Nvidia in 2011 and shutdown in 2015.
European Commissioner for Competition Margrethe Vestager said in a statement that Qualcomm used “predatory prices to protect its dominance.” She said relevant rules don’t prohibit low prices but “dominant companies have a special responsibility not to impair competition…They can sell at low prices but cannot sell below cost with the intention of eliminating a competitor. This is not competition on the merits.”
