The chip-making market was stung by a massive fine as the European regulators add another nail to the Qualcomm coffin from their previous debacle with Apple. The EU regulators noted that Qualcomm’s acts have damaged the whole chip-making market, especially its notable competitor, Intel. The chipmaker’s shares stumble down after news broke.
Furthermore, the company has been reportedly gathering the forces of Chinese smartphone manufacturers as an effort to launch the super speed new technology, the 5G. The company is looking to make an earlier introduction to the new tech as early as next year.
According to reports, the companies that have been currently rallied are Chinese manufacturers such as; Xiaomi, Oppo, and Vivo are among the companies that are looking to unveil the amazing tech next year which will be dubbed as the “5G Pioneer”.
Qualcomm versus EU Regulators
The chip maker has been struggling on the market today as the European regulators hammered them with a hefty $1.2 billion fine. According to the European Commission, the company has been found guilty of anti-competitive practices; reports revealed that the company has been using the unfair practices from 2011 to 2016.
Additional information reveals that Qualcomm has been paying Apple for them to use their manufactured chips exclusively; this means that Apple has been using their chips for their iPhone and iPads line.
According to EU Competition Commissioner Margrethe Vestager, This meant that no rival could effectively challenge Qualcomm in this market, no matter how good their products were," Furthermore, "We’re talking about one of the biggest and most important customers in this market."
More Regulation Information
This hasn’t been the first time that the European Regulators have smacked a massive fine against these private companies, as a matter of fact; the previous regulation also involves anticompetitive practices.
It was Google who was fine by a massive $2.7 billion for their unfair practices and this was the largest fine that the globally renowned tech company has received.
According to Qualcomm, they are looking to appeal the recent ruling. Furthermore, the company is also looking to face legal issues with Apple as both companies have been dangling with legal battles for numerous issues and reasons.
Qualcomm’s Market Performance
All-in-all, the company has been staying positive this year with a total of 3.62% increase; but most recently, the company has been facing setbacks due to the massive fine the EU regulators handed to them and cause massive market performance turbulence.
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