Qualcomm is slipping after the EU dealt a massive blow to the tech giant

Qualcomm is slipping lower on Wednesday after the company was served a massive $US1.2 billion fine for what the European Commission deemed anticompetitive practices.

Shares were down 1.68% to $US67.19 in early trading Wednesday.

From 2011 to 2016, Qualcomm paid Apple to exclusively use its chips in Apple’s products, a practice the European Commission frowned upon. “They illegally shut out rivals from market of LTE baseband chipsets for over 5 years. Misuse of dominant position. Don’t,” Margrethe Vestager, the European Commissioner for Competition, tweeted about the ruling.

The $US1.2 billion fine is not the first blow Vestager and her commission have given the tech industry. The commission forced Google to pay the largest ever fine of $US2.7 billion for unfair practices around its comparison shopping product.

The commission has also ruled against Intel and is currently investigating other cases against both Google and Qualcomm. Qualcomm said it would appeal the most recent decision.

Qualcomm is currently locked in a giant legal battle with Apple over the alleged misuse of a dominant market position. The two companies have been trading legal blows for the past year.

Qualcomm is also currently fending off a hostile takeover bid from rival Broadcom, which Qualcomm says is trying to take advantage of temporary setbacks at the company.

Qualcomm is up 3.62% this year.

Read more about the historically large Google fine here.

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