Could Qualcomm be in trouble? Gloomy days ahead for the chipmaker!

The European Union is accusing chipmaker Qualcomm of several things, including selling its chipsets below manufacturing costs and possibly making illegal payments to a major customer to use its products exclusively. The company also engaged in anti-competitive activities to drive its competitor Icera, a UK mobile software developer, out of the market.

Qualcomm has been aware of the allegations against it since late 2015. If the proceedings are finally concluded and the competition rules are found to have been infringed, Qualcomm will be liable to pay a fine of up to 10 percent of its annual revenue. Qualcomm is also in a battle with the US Federal Trade Commission (FTC), which also accuses the chipmaker of engaging in anti-competitive business practices. On top of this, they have been fined $910 million by the regulator in South Korea, which they are asking to delay until the case is settled.