Qualcomm could face a billion dollar fine from the Chinese government

Qualcomm could face a billion dollar fine from the Chinese government

China's anti-monopoly regulator, theNDRC, could fine US chip-making giant Qualcomm more than $1 billionon charges of monopolism. The agency received reports that Qualcomm"abuses its dominant position in the market and chargesdiscriminatory fees." In one such case, the China MobileCommunications Industry Association filed a complaint against thechip-maker for overpricing its patent licenses.

The Chinese government beganinvestigating Qualcomm late last year, following evidence ofprice-fixing. Last November, it conducted raids in the company'sBeijing headquarters and its Shanghai offices. The San Diego-basedchip-maker has been cooperating with the investigation. LastDecember, Chinese officials met William Bold, Qualcomm's senior vicepresident for government affairs, and Fabian Gonell, vice presidentand counsel for technology licensing. According to spokeswomanCheistine Trimble, the company intends to "continue cooperatingfully with the NDRC". However, details about the investigationwill remain confidential.

Analysts state that any possibleresolution will involve Qualcomm lowering patent licensing fees forChinese customers, and paying a fine. Under Chinese anti-monopolylaw, the NDRC can confiscate between 1 to 10% of the company'srevenues for the previous fiscal year.

The Chinese government's ongoingconsumer protection efforts have stretched to foreign companies fromall industries, including tech firm InterDigital Inc, pharmaceuticalgiant GlaxoSmithCline, and food maker Danone. They have all facedsimilar scrutiny in suspicion of anti-competitive practices.

source: Reuters



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: 440; Member since: May 12, 2012

Yeah man.. & its almost as bad as the USA government banning Huawei for no reason whatsoever!!

17. Ashoaib

Posts: 3309; Member since: Nov 15, 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: 368; Member since: Jan 30, 2014

China needs to discipline their copycat companies first !!!

12. hurrycanger

Posts: 1773; Member since: Dec 01, 2013

nah, China loves its copycat companies, lol. It just makes profits for its people and the country. xD

6. papss unregistered

I agree..

7. sipha

Posts: 440; Member since: May 12, 2012

You American right??

15. papss unregistered

You Chinese right?

20. sipha

Posts: 440; Member since: May 12, 2012

South African o.O ...so??

25. Just.Saying

Posts: 132; Member since: Apr 04, 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: 246; Member since: Dec 12, 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: 3309; Member since: Nov 15, 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: 3309; Member since: Nov 15, 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: 3309; Member since: Nov 15, 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....

2. Dude2014

Posts: 448; Member since: Feb 12, 2014

Inb4 tension between US and China

4. tokuzumi

Posts: 1961; Member since: Aug 27, 2009

The first thing to do is to scout new locations for a plant, and make them elsewhere.

9. Augustine

Posts: 1043; Member since: Sep 28, 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: 749; Member since: Dec 14, 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: 621; Member since: Aug 20, 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: 1043; Member since: Sep 28, 2013

Who'd have to pay those tariffs on "our" products?

24. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Good. Someone needs to tame corporate hooliganism.

26. dome888

Posts: 87; Member since: Oct 10, 2012

chinese moves...

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