The European Union has decided not to appeal the decision of the European Court of Justice in the case which opposes it to the American giant Qualcomm.
After four years of legal proceedings, the European Court of Justice finally ruled in favor of Qualcomm, which challenged a fine of nearly one billion euros imposed by the European Union. The latter has the possibility of appealing, but should abstain.
What did the EU blame Qualcomm for?
For several years now, the European competition authority has targeted several American digital and new technology giants, imposing record fines on them. They are notably accused of trying, often successfully, to impose their economic weight and their hegemony on European firms.
Qualcomm, one of the world leaders in the creation and marketing of processors for smartphones, was notably targeted in 2018. A fine of 997 million euros was imposed on it for abuse of a dominant position and abusive commercial practices. The American company would have indeed, according to the European regulator, imposed its solutions on manufacturers like Apple, at the expense of its competitors.
Before the European Court of Justice in Luxembourg, Qualcomm for its part argued that the analysis on which the fine was based was erroneous, and was based on a poor understanding of this market. Arguments that carried, since the company finally won its case, and will therefore not have to pay the fine. Unless the situation turns around, the EU should not appeal.
What are the consequences for the European Union?
The tussle imposed by the European competition commissioner on American multinationals for several years now does not seem to bear all the hoped-for results. Because if this is not the first time that fines amounting to hundreds of millions, even billions of euros, have been imposed on them, it is not their first victory in court either. Thus, Intel had received in 2009 a fine amounting to more than one billion euros for similar facts. Thirteen years of legal battle later, the fine has not only been canceled by the courts, but the company is now asking 600 million euros in compensation from the EU. A stroke of pressure that may have played in the latter’s decision not to appeal against Qualcomm.
It therefore remains to be seen what signal this new unfavorable decision for the EU will send to large companies. There is no doubt that Google, which is contesting a fine of more than 4 billion euros, has followed this case with interest…
Sources: Neowin, Overclocking
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