US smartphone chip supplier Qualcomm has been fined 997 million euros ($A1.72 billion) for breaching EU competition rules through a deal with Apple.
Qualcomm is the world's largest supplier of baseband chipsets, which are used for voice and data transmission in smartphones, tablet computers and other mobile devices.
The commission said that Qualcomm has paid billions of dollars to Apple since 2011 in exchange for the tech giant exclusively using Qualcomm chipsets in its smartphones and tablets.
"This meant that no rival could effectively challenge Qualcomm in this market, no matter how good their products were," said Margrethe Vestager, European commissioner for competition.
"Qualcomm's behaviour denied consumers and other companies more choice and innovation - and this in a sector with a huge demand and potential for innovative technologies."
The fine represents 4.9 per cent of Qualcomm's 2017 turnover.
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