Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Monday 29 January 2018

EU fines Qualcomm $1.23B for paying Apple to use its chips

By RAF CASERT won't face any repercus-
MICHAEL LIEDTKE sions in Europe, Vestager
Associated Press said. She cited internal
BRUSSELS (AP) — European documents showing Apple
regulators have fined Qual- considered switching some
comm $1.23 billion after of its work to Intel but could
concluding the U.S. mobile not do so financially until
chipmaker bribed Apple to the end of the agreement.
stifle competition by using Apple is now at odds with
its products exclusively in Qualcomm in a showdown
iPhones and iPads. involving billions of dollars.
The penalty announced After filing a lawsuit seek-
last week marks the latest ing $1 billion from Qual-
blemish on Qualcomm, comm for alleged extor-
whose business tactics tion, Apple and its suppliers
have been portrayed as il- began withholding royalty
legal abuses of power in payments to Qualcomm
lawsuits filed by the U.S. until the legal dispute is re-
Federal Trade Commission solved. The suit already is a
and Apple. Those cases year old.
are still making their way Qualcomm’s financial al-
through the courts. liance with Apple made it
The European Union probe easier to sell chips to small-
focused on a different area Visitors look at a display booth for Qualcomm at the Global Mobile Internet Conference (GMIC) in er manufacturers swayed
than the U.S. lawsuits. Those Beijing. The European Union is slapping a $1.23 billion fine on U.S. chipmaker Qualcomm for abus- by what kinds of compo-
complaints allege Qual- ing its market dominance in the lucrative sector of vital components in smartphones and tablets. nents were being used in
comm has been imposing (AP Photo/Mark Schiefelbein) the trend-setting iPhone
unfair licensing terms on were designed to "illegally cash that Qualcomm had technology. and iPad, Vestager said.
Apple and other makers of shut out rivals from the mar- stockpiled through Sep- Apple declined to com- She believes the competi-
mobile devices for technol- ket," Vestager said. tember. ment on the arrangement tion in the mobile chip mar-
ogy that it didn't invent. Qualcomm called the de- The San Diego company that triggered the Europe- ket has been restored in
European regulators con- cision incorrect and vowed also has adamantly denied an inquiry and the fine on the European market now
tend Qualcomm secretly to appeal the fine, which allegations that it has been Qualcomm. that Qualcomm Inc. is no
paid Apple to use its chips amounts to 997 million eu- gouging Apple and other Despite cooperating with longer paying Apple Inc. to
for connecting to high- ros. It represents less than 5 mobile device makers with Qualcomm for the bet- use its products. q
speed cellular networks as percent of the $35 billion in its licensing demands for its ter part of six years, Apple
long as Apple didn't switch
to rival products from 2011 Apple will give users control over phone slowdown
to 2016. Without providing
specifics, EU Commissioner SAN FRANCISCO (AP) — Apple was purposefully
Margrethe Vestager said Apple's next major update undermining the perfor-
Qualcomm doled out "bil- of its mobile software will mance of older iPhones to
lions of dollars" to Apple include an option that will drive sales of its newer and
during that period. enable owners of older more expensive devices.
Europe is Apple's second iPhones to turn off a fea- Apple insisted it was simply
largest market behind ture that slows the device trying to extend the lives of
North America. The region to prevent aging batteries older iPhones, but issued
generated nearly $250 bil- from shutting down. an apology last month and
lion in revenue for Apple The free upgrade an- promised to replace bat-
from 2011 through 2016, the nounced last week will be teries in affected devices
period covered by the EU's released this spring. at a $50 discount, lowering
probe. The additional controls are the price to $29.
Some of the payments to meant to appease iPhone Despite Apple's contrition,
Apple were cloaked as owners outraged since the company is still facing
price cuts on Qualcomm Apple acknowledged last an investigation by French
components that were month that its recent soft- authorities , a series of
contingent on Apple refus- ware updates had been questions from U.S. Senate
ing to buy chips from other In this Monday, June 5, 2017, file photo, a person takes a photo secretly slowing down old- and a spate of consumer
companies, such as Intel, of an Apple logo before an announcement of new products at er iPhones when their bat- lawsuits alleging miscon-
according to Vestager. the Apple Worldwide Developers Conference in San Jose, Calif. teries weakened. duct. q
Qualcomm's payments (Associated Press)
Many people believed