Qualcomm said on Wednesday that EU authorities are launching an investigation into the company's opposition to monopoly.
Qualcomm said in its 10Q regulatory filing to the US Securities and Exchange Commission that the European Commission is investigating the company ’s alleged anti-competitive behavior in an attempt to find out whether the company has used it in the RF front-end chip market. 5G baseband processor market position. On December 3 last year, the company received a request for information from the European Commission. RF semiconductors are used to allow smartphones to communicate with wireless networks.
Qualcomm said in the document that if the company is found to be engaged in violations, the European Commission may impose a fine equivalent to up to 10% of annual revenue and may limit its business practices. Qualcomm said it was difficult to predict the results of the investigation, but did not consider its business practices to violate EU competition rules.
After the US stock market closed on Wednesday, Qualcomm announced better-than-expected first quarter results for fiscal 2020. The financial report showed that Qualcomm's adjusted earnings per share for the first fiscal quarter were 99 cents, higher than the 85 cents previously expected by Wall Street analysts; revenue was $ 5.06 billion, which was also higher than analysts expected $ 4.84 billion.
Qualcomm shares fell 0.3% in Thursday's trading in the US stock market, compared with the Nasdaq Composite Index which rose 0.7%.
The company has not responded to a request for comment on the European Commission's investigation.