Qualcomm is set to take a rather hard hit on the company's finances, potentially being fined around $1 billion in China. According to a report by Reuters, the fine will be the result of a 14-month investigation by Chinese authorities into anti-competitive practices, and could be combined with Qualcomm lowering royalty fees by around a third on patents used in the region.
Discussions in Beijing over one of the most contentious cases under China's 2008 anti-monopoly law have intensified in recent weeks, culminating in meetings between Qualcomm senior executives and National Development and Reform Commission (NDRC) officials on Friday.
China alleges Qualcomm's licensing practices are anti-competitive, though the company defends its cross-licensing model by claiming it prevents infringement lawsuits from taking over the industry. A source cited by Reuters states an announcement could be made by China's National Development and Reform Commission as soon as Monday.