More Bad News For U.S. Chipmaker Qualcomm

U.S. chipmaker Qualcomm plans to appeal the European Commission’s decision to fine the company $1.23 billion for allegedly making illegal payments to Apple.

The European Commission announced the fine on Wednesday, alleging Qualcomm paid Apple billions to ensure the company uses its LTE chips in its iPhones and iPads. European Union Antitrust Commissioner Margrethe Vestager said in a statement that Qualcomm’s behavior ’denied consumers and other companies more choice and innovation.’

Qualcomm has denied any wrongdoing and is planning to appeal the decision. In a statement, Executive Vice President and General Counsel of Qualcomm Don Rosenberg said, ’We have a strong case for judicial review and we will immediately commence that process.’

CRN Senior Technical Editor Kyle Alspach said there are a number of things that make this intriguing.

’Apple is also filing lawsuits against Qualcomm over a separate issue involving royalties for patents, so this isn’t the first time Apple and Qualcomm have been tied up over a major dispute,’ he said. ’Also, Qualcomm is potentially going to be taken over by one of its own rivals, Broadcom.’