Dallas, Texas 07/16/2015 (Financialstrend) – QUALCOMM, Inc. (NASDAQ:QCOM) will soon be investigated by the European Commission, on two fronts: first on issues of anti-trust and second on tax inquiries.
According to news reports on Thursday, the company is allegedly involved in ‘financially’ incentivizing its clients to buy its products. The company makes chips which are used in tablets as well as smartphones, besides mobile devices.
The second issue relates to pricing its products less than cost in European markets, with the intent to force other companies away from the market.
Substantiating QUALCOMM, Inc. (NASDAQ:QCOM) investigations, European Competition Commissioner Margrethe Vestager remarked that the need of the hour was to establish if ‘high-tech suppliers could compete on the merits of its products.’ The fact that mobile phones and tablets are now commonly, the intent of the commission was to ensure every customer gets value for money. Mobiles and tablets run on chips that are made by the likes of QCOM and other competitors.
For some time now several of the US corporations are being reviewed by the European Commission for antitrust issues. Top of this list of companies under investigation include search engine giant, Google Inc (NASDAQ:GOOG). Another top US company which is being investigated is Amazon.com, Inc’s (NASDAQ:AMZN) ebook business. Besides a line-up of three other big companies is part of the tax evasion investigation. These include Amazon Inc (NASDAQ:AMZN) as well as Apple Inc (NASDAQ:AAPL) besides, Starbucks.
QUALCOMM, Inc. (NASDAQ:QCOM) officially stated that they were disappointed by the latest development. The company reported that it had been cooperating with the commission and reiterated its stance that there was no merit to the spate of concerns. The company is expected to pay $975 million as fine in China, following investigations of anti-trust issues in that market.
European Commission has rights to fine businesses guilt of antitrust to as much as 10% of its global earnings.
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