Press Release

European Commission Applies New Policy for Reviewing Antitrust Complaints and Continues Qualcomm Investigation

No Statement of Objections Issued

Oct 1, 2007SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

Qualcomm Incorporated (Nasdaq: QCOM) has been informed that the European Commission has taken the procedural step of “initiating proceedings” against Qualcomm, in response to complaints first lodged in 2005 by six companies. Under a newly adopted policy for handling antitrust complaints, the Commission has “initiated proceedings” without expressing a view on the merits of the complaints and without issuing a Statement of Objections. In doing so, the Commission has made the resolution of this case a matter of priority. “Initiation of proceedings” leaves open the various courses of action the Commission may choose at the end of the investigation, including rejection of the complaints, seeking a settlement with Qualcomm or issuing a Statement of Objections.

“We are pleased that the Commission has decided to give the case priority status to move it forward swiftly to resolution,” said Steve Altman, president of Qualcomm. “We welcome the continuation of our dialogue with the Commission in order to demonstrate that the complaints are without merit and are motivated by commercial considerations of the entrenched complainants who are trying to stifle the competition that Qualcomm brings to the market.”

“Furthermore, we will continue to explain the undisputed fact that Qualcomm greatly contributed to the development and commercialization of WCDMA technology and has abided by its obligations to ETSI and other standards setting organizations, including its commitments to offer licenses to its essential patents on fair, reasonable and non-discriminatory (FRAND) terms. Qualcomm's business model of extensively licensing our innovations has opened WCDMA to new players - driving competition, growth and further innovation. As a direct consequence, European consumers are benefiting from greater competition, rapidly declining WCDMA handset prices and more handset choices and features.”

Qualcomm Incorporated ( is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2007 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 24, 2006, and most recent Form 10-Q.

Qualcomm is a registered trademark of Qualcomm Incorporated. All other trademarks are the property of their respective owners.

The Commission has taken this procedural step under Article 11(6) of Council Regulation No. 1/2003 and Article 2(1) of Commission Regulation No 773/2004.

Article 2 of Regulation No. 773/2004 provides that the Commission can initiate proceedings with a view to adopting, at a later stage, a decision on substance according to Articles 7-10 of Regulation No 1/2003. Articles 7-10 of Regulation No 1/2003 govern specifically;

  • a finding of infringement following the issuance of a Statement of Objections (Article 7);
  • interim measures (Article 8);
  • commitments (Article 9); and
  • a finding of inapplicability (Article 10) rejecting the complaints.

In the current case, the Commission has chosen to open proceedings before any such further steps are taken.

Since the beginning of 2007, the Commission has applied this procedure in at least five previous investigations involving Boehringer, ENI, E.On/GdF, Suez and EdF.