EU targets another U.S. tech company with fine

— In yet another European Union move against a U.S. tech company, the bloc’s antitrust chief Thursday fined chipmaker Qualcomm $271 million, accusing it of “predatory pricing” to drive a competitor out of the market.

EU Antitrust Commissioner Margrethe Vestager said Qualcomm was abusing its market dominance in 3G baseband chipsets. She said it sold them below the cost of production to force startup Icera out of the market almost a decade ago.

“Baseband chipsets are key components so mobile devices can connect to the internet. Qualcomm sold these products at a price below cost to key customers with the intention of eliminating a competitor,” she said.

Qualcomm is facing antitrust battles on multiple fronts. In the U.S., a federal judge ruled in May that Qualcomm unlawfully squeezed out cellphone chip rivals and charged excessive royalties to manufacturers such as Apple.

The Justice Department, however, has backed Qualcomm because of national security concerns — it sees Qualcomm as instrumental to a politically sensitive “race to 5G” — a mobile network upgrade that could mean big technological changes. The U.S. is fighting for leadership over 5G with China, a tussle that has spilled over into the trade war. The U.S. has also punished Huawei, a Chinese tech company whose networking products are used in many countries, due to national security concerns.

The Justice Department has asked for a pause on enforcement of the antitrust action while Qualcomm appeals the case. “Immediate implementation of the remedy could put our nation’s security at risk, potentially undermining U.S. leadership in 5G technology and standard-setting, which is vital to military readiness and other critical national interests,” the Justice Department said in a court filing Tuesday.