Qualcomm has been facing some fresh antitrust scrutiny from the European Commission, as the regulator has raised questions about radio frequency front end (RFFE) chips that can be used in 5G devices.
Qualcomm has been expanding into selling RFFE chips for 5G devices, per Reuters. This would encourage buyers of its 5G modems to also buy its radio frequency front-end chips, rather than buying from other vendors and the integrating their hardware with its 5G modern chips.
As per a European Commission spokesperson, they said that the Commission has sent out questionnaires, as part of a preliminary investigation into the market for radio frequency front end.
Qualcomm has not commented so far.
However, if a violation is found, it warns investors that the EC has the power to impose a fine up to 10 percent of its annual revenues, and also could issue injunctive relief that prohibits or restricts certain business practices.
Last year, Europe’s competition commission fined Qualcomm close to around $270 million, followed by a long-running antitrust investigation. Also two years ago, the Commission had fined the chipmaker a full $1.23 billion in another antitrust case, that was in another antitrust case that was related to its dominance in LTE chipsets in smartphones and specifically related to its relationship with Apple.
Previously, Qualcomm has said that they would continue to vigorously defend them in foregoing matters. But, litigation and investigations are uncertain, and there might be difficulties in evaluating or estimating likely outcomes.
