The European Union has charged Qualcomm (NASDAQ:QCOM) with abusing its market power to overtake the market. The company has been accused of hindering the success of rivals, and faces a $2.7 billion fine as a result.
The world’s largest mobile chipset maker is also being probed by United States, China, South Korea and Japan for licensing model and patents. The company also announced that the Taiwan Fair Trade Commission is investigating the company as well for patent licensing deals.
Qualcomm’s formal investigation by the EU came in July 2015, and the company is being accused of paying a major customer to use the company’s chips exclusively. Allegedly, the company also sold chips well below market pricing in an attempt to push out competitors in the market. Predatory pricing may cost the company 10% of its revenue, roughly $2.7 billion, in fines.
The Chinese government was paid $975 million after conducting a 14-month investigation into the company for anti-competitive practices.
Qualcomm’s 4G modem will powers Apple’s (APPL) iPhone 6, and many Samsung Electronics (KRX: 005930) and HTC Corp. (TPE) products.
Following the announcement by the EU, the company’s stock has fallen 3.81% on the day, currently trading at $50.44 a share. Qualcomm stock has fallen dramatically this year opening 2015, with a stock price of $74.28.