Question: https://www.reuters.com/article/eu-antitrust-qualcomm-idUSL2N0ZW0FX20150716 Qualcomm is a US company. Hence, why do the Europeans and China want to fine Qualcomm? Should US companies be under the umbrella of

https://www.reuters.com/article/eu-antitrust-qualcomm-idUSL2N0ZW0FX20150716

  • Qualcomm is a US company. Hence, why do the Europeans and China want to fine Qualcomm? Should US companies be under the umbrella of US authorities? Why or why not?
  • In probing for predatory pricing, should we consider the ATC or the MC? To be sure, how would you define predatory pricing?
  • In most places, in the market for baseband processors Qualcomm's market share is about two thirds. Does this mean that Qualcomm could charge arbitrarily high prices? Hint: See game on page 355 of the textbook.
  • Should predatory prices be allowed as consumers benefit from the low prices? Hint: Even if this is true, there could be disputes between domestic firms and foreign firms.

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