Qualcomm may have to dole out $1 billion to settle antitrust case in China

Qualcomm may have to dole out $1 billion to settle antitrust case in China
After a fourteen months worth of a government investigation into Qualcomm's allegedly anti-competitive practices in China, including price fixing and abusing its dominant position as the leader in the space, the chipmaker is close to settling with China's National Development and Reform Commision (NRDC). 

According to Reuters, Qualcomm will likely have to pay a whopping $1 billion fine, with the deal possibly being announced as soon as next Monday. As part of it, Qualcomm may also have to lower its royalty rates by up to a third of what they're charging now in order to comply. The fine would be an absolute record for any company operating in China.

San Diego-based Qualcomm is unlikely to be all too happy about all of this, but it's also quite possible that a fine, even the size of a billion dollars, is a small price to pay for continuing to do business in China. Reuters reports that half of Qualcomm's global revenu of $26.5 billion was earned from its business in China, a large part of which comes from royalties it collects. A settlement will also allow Qualcomm to better address the threat of MediaTek, which has been making headway in the lower end chip market as of late.

source: Reuters

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6 Comments

1. Ashoaib

Posts: 3309; Member since: Nov 15, 2013

So the prices of miezu, xiaomi and others will further reduced? I hope it will impact selling prices

2. xondk

Posts: 1904; Member since: Mar 25, 2014

Big companies trying to squeeze as much money out of people as possible. No surprise there.

3. AfterShock

Posts: 4147; Member since: Nov 02, 2012

Many companies willingly deceive to get the sale an pay fines for infractions incurred later after market or any other damage is done.

4. Neros

Posts: 1016; Member since: Dec 19, 2014

On second thought, screw qualcom. Serves them right.

5. FlyingDutch

Posts: 97; Member since: Jan 30, 2015

The Chinese screw any non-domestic company.

* Some comments have been hidden, because they don't meet the discussions rules.

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