Qualcomm could face a billion dollar fine from the Chinese government
China's anti-monopoly regulator, the NDRC, could fine US chip-making giant Qualcomm more than $1 billion on charges of monopolism. The agency received reports that Qualcomm "abuses its dominant position in the market and charges discriminatory fees." In one such case, the China Mobile Communications Industry Association filed a complaint against the chip-maker for overpricing its patent licenses.
The Chinese government began investigating Qualcomm late last year, following evidence of price-fixing. Last November, it conducted raids in the company's Beijing headquarters and its Shanghai offices. The San Diego-based chip-maker has been cooperating with the investigation. Last December, Chinese officials met William Bold, Qualcomm's senior vice president for government affairs, and Fabian Gonell, vice president and counsel for technology licensing. According to spokeswoman Cheistine Trimble, the company intends to "continue cooperating fully with the NDRC". However, details about the investigation will remain confidential.
Analysts state that any possible resolution will involve Qualcomm lowering patent licensing fees for Chinese customers, and paying a fine. Under Chinese anti-monopoly law, the NDRC can confiscate between 1 to 10% of the company's revenues for the previous fiscal year.
The Chinese government's ongoing consumer protection efforts have stretched to foreign companies from all industries, including tech firm InterDigital Inc, pharmaceutical giant GlaxoSmithCline, and food maker Danone. They have all faced similar scrutiny in suspicion of anti-competitive practices.
1. AppleHateBoy (unregistered)
I hate China.
3. AppleHateBoy (unregistered)
Btw, when did we get "Patent Licensing Fees" rules?? It's like suing Apple for selling the iPhone for 600$.
8. sipha (Posts: 261; Member since: 12 May 2012)
Yeah man.. & its almost as bad as the USA government banning Huawei for no reason whatsoever!!
17. Ashoaib (Posts: 1472; Member since: 15 Nov 2013)
Agree, when US has NSA servalence, it should not blame others for the same, specially when it is a hypothetical assumption... it sounds like when I do it, its legal but when other do the same, he is very bad...
5. aksa123 (Posts: 173; Member since: 30 Jan 2014)
China needs to discipline their copycat companies first !!!
12. hurrycanger (Posts: 984; Member since: 01 Dec 2013)
nah, China loves its copycat companies, lol. It just makes profits for its people and the country. xD
6. papss (unregistered)
15. papss (unregistered)
You Chinese right?
25. Just.Saying (Posts: 132; Member since: 04 Apr 2013)
we also have anti price fixing laws in South Africa. Remember Albany got fined for price fixing a few years ago
23. AppleHateBoy (unregistered)
Indian. I have even more reasons to hate China, btw.
10. androtaku (Posts: 168; Member since: 12 Dec 2013)
how much U.S should be suing whole china copycat industry
from trademark copycat i.e Rolex,LV to technical patent infringement
14. Ashoaib (Posts: 1472; Member since: 15 Nov 2013)
I love china... keep it up... cheap products.... hurrrrreeeeyyyyy!!!!!
16. papss (unregistered)
You can have their products.. Including led paint, under age workers and terrible pay for their people..all so you can have cheap products.. Awesome
18. Ashoaib (Posts: 1472; Member since: 15 Nov 2013)
Half of multinationals have their production in china... so dont talk about terrible pays n others, MNCs are benefiting from all these... seems like you never herd about employees issues in apple's production facilities? now who says apple is cheap??? ... apple only put some restrictions after reports were out about terrible conditions of their manufacturing contractors... who earned massive profits from misserable conditons and low wages of workers? its not a chinese company, right?
21. papss (unregistered)
So that makes it right? I'm confused by your spin on human rights in china
22. Ashoaib (Posts: 1472; Member since: 15 Nov 2013)
No spin, you are confused anyway... I just answered your provided reasons of cheapness... your provided reasons are still there regarless of cheap/expensive and has nothing to do with my joy of cheap products....
4. tokuzumi (Posts: 262; Member since: 27 Aug 2009)
The first thing to do is to scout new locations for a plant, and make them elsewhere.
9. Augustine (Posts: 681; Member since: 28 Sep 2013)
Qualcomm's licensing division, QTL, the one staffed by parasite lawyers, makes up 65% of the profits. While the chips division, QTC, the one staffed by innovating engineers, makes only 35% of the profits, in spite of its being responsible for 70% of the gross revenue. IOW, weren't for Qualcomm's patents on CDMA (used in both EVDO and UMTS), it'd be a much less profitable and weaker company.
11. a_merryman (Posts: 641; Member since: 14 Dec 2011)
They hold patents in a lot of important wireless technologies. That's where they're the most innovative. Obviouly if it werent for those technologies it would be much weaker, but the wireless space would also be a lot further behind where it is now. They deserve to profit from the technology that they have invented and is now used around the world.
13. bigstrudel (Posts: 518; Member since: 20 Aug 2012)
All the US would have to do is charge the same tariffs they charge on our products and China would be crumbling within a decade.
19. Augustine (Posts: 681; Member since: 28 Sep 2013)
Who'd have to pay those tariffs on "our" products?
24. rusticguy (Posts: 2826; Member since: 11 Aug 2012)
Good. Someone needs to tame corporate hooliganism.