While Qualcomm may have managed to avert a crisis (for now) in the US over the import of its 3G chipsets, it is now facing formal antitrust proceedings from the European Commission. Nokia, Broadcom Corp, NEC, Texas Instruments, Matsushita Electric Industrial, and Ericsson complained that Qualcomm charged too much for vital technology licenses. The companies feel that overly high royalties would drive handset costs and hinder the future development of the 3G standard.
The commission promised an in-depth investigation but did not provide any specific timelines or deadlines. Possible outcomes could include scrapping the investigation, a settlement with Qualcomm or legal proceedings that could result in a fine as high as 10 percent of the company’s annual, global revenues.
Qualcomm responded by indicating that it would work with the European Commission but accused the mobile phone makers of trying to “stifle the competition that Qualcomm brings to the market.”
Source: Engadget Mobile