EU opens two antitrust probes into Qualcomm

LONDON — European regulators have formally opened two antitrust investigations into the U.S. chip maker Qualcomm.

In a statement Thursday, the European Commission said it had launched the twin probes "into possible abusive behavior."

The first investigation is into whether Qualcomm breached EU antitrust rules by offering customers financial incentives if they buy baseband chipsets exclusively or almost exclusively from the San Diego-based firm.

The second probe will examine whether Qualcomm engaged in "predatory pricing" by charging below costs, aiming to force its competition out of the market, the statement said.

Margrethe Vestager, the European commissioner for competition, said: "Many customers use electronic devices such as a mobile phone or a tablet and we want to ensure that they ultimately get value for money. Effective competition is the best way to stimulate innovation."

In a statement to Paste BN, Qualcomm said it believed any concerns were "without merit."

"We were informed that the European Commission has taken the procedural step of "initiating proceedings" against Qualcomm with regard to the two ongoing investigations into Qualcomm's sale of chipsets for mobile devices. This step allows investigators to gather additional facts, but it represents neither an expression by the Commission on the merits of the case nor an accusation against the Company. While we were disappointed to hear this, we have been cooperating and will continue to cooperate with the Commission."

The latest probe follows the recent launches of EU antitrust investigations into firms including Google, MasterCard, Amazon and Russian energy giant Gazprom.