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

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