Qualcomm to part with $1 billion to settle China antitrust dispute

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.

Source: Reuters

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds was formerly a Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him on Twitter at @RichEdmonds.

52 Comments
  • well, they are one of 17+ mobile processor companies that are relevant
  • 2❓❓❓
    ....
    Samsung
    Intell
    Qualcomm...... Maybe more, I'm not sure.
  • MTK
    Nvidia
    AMD
    VIA
  • Name one Intel phone. I said relevant
    And if there is an Intel phone, then, well, I'll edit the comment
  • The new Asus one for starters, but Moto had a Razr variant that was Intel too.
  • Mobile is more than just phone, it's also tablet. And Intel tablets are quite relevant these days.
  • IIRC Xolo has an intel phone
  • Razr i
  • You didn't say mobile originally... Lol!
  • Smartphones with Intel Inside And there's Intel's XMM: Intel's XMM
  • It's kind of hard for them NOT to run a monopoly at this point. I would like to see more competition though. If they are the cheapest however, it's hard for that to happen.
  • That are relevant...yes.
  • So a country ruled by dictatorship which only allows one ruling party sues foreign companies for being anti-competitive?
    am I the only one laughing at this ridiculous situation?
  • Nice angel
  • Haha, good point.
  • Perfect you have it in one.
  • That is a US perspective. Communism considers itself democratic, running on an alternate form of democracy to a party political system. You may have a beef with that, but it not true that Communism = dictatorship (though as with any system it can be made to be, China's system is one of the least easy Communist systems to accuse of such). I'm not keen on the Chinese approach, don't get me wrong, but your point is very poorly made.
  • How about this for a point then Andy. When people ask for basic /. fundamental human rights they get imprisonsed: http://en.wikipedia.org/wiki/Charter_08
    country ruled by a dictator or dictators
    absolute or supreme power or authority
      If that isn't dictatorship, I don't know what is. China might try to kid themselves that "their version" of democracy is democracy. But we all know it isn't. If you visit somewhere like Budapest as I have, and seen where they imprisoned political dissidents you will get some sense of why communist party dictatorships are evil. Its not a western perspective, its a logical persepective. There is no democracy where there is no free speech, nor free press etc. Are you too young to remember tiananmen square?  
  • Democracy requires the citizens to have a choice and tehy get to vote on laws or for their representatives. China only has one choice, the communist party. They might throw in a couple party members to make it seem like you have a choice, but in the end the top party officials have all the say and they will throw lower party members in jail if they don't stay in line. It's not a dictatorship as there are several very powerful officials that run things. However, it is most definitely not democratic even if they consider themselves to be democratic.
  • I think Karl Maxx would be rolling in his grave seeing how his communism is being butchered by a "dictatorship"
  • China's innovative fund raising method...
  • Yup, China tax. Pay, or don't sell goods in our land.
  • Refuse to pay!!  Move your offices out of China!!   Let them build their own chips. Its not like China cares about patents anyway.  They pirate our best software.   Let the Chinese use linux on pentium. lol
  • Thanks to the everything has to be cheaper generation all the knowlege on how to develop IT sits in China. Not sure if you knew this.
  • Do you even believe what you're typing?
  • So what!? We don't care. It will only be mutual mistake to stop marching in our market. Unless you know nothing about business doing.
  • So, I can help you fulfill your wish just to give me all your stuff that is made in china. No big deal, right? Lmao
  • Are you prepared to pay $100-$200 more for your smartphones, tablets, TV, etc.
  • I'd just tell China to shove it.
  • Lord. Stop doing business in CHINA!! This government deceives to such a great degree about situations of this type.
    ...
    They steal your intellectual property. Pirate your OS and make false claims so that they can benefit themselves and their companies at the expense of companies dealing with this market.
    ...
    If you continue to do business with a nation you know will stab you in the back, profit off of your products and services..then you fully deserve the outcome that is to follow. I mean seriously, grow a back bone and wise up. Reject the Chinese markets until that government actually allows free movement.
    ...
    Just stick with North and South American markets as well as Europe, India and Asian markets. You'd be better off.
  • So your saying China is not part of the Asia? :P :P Joking aside, China is essentially the worlds factory and almost all electronic goods are manufactured there. Given the ever increasing demand for electricals, the situation isn't going to change anytime soon.
  • Yea, just try boycotting Chinese goods and see how quickly you're back to using an abacus.
  • We could manufacture our own goods. It would just be more expensive to do so.
  • Man remember how Apple iMacs were "Made in the USA" and Motorola Moto X as well? Wtf happen to those anyway?
  • The thing is you can't stop doing business with them, you're damd if you do & damd if you don't.
  • Well if China don't get what they want then they'll probably just hack them.
  • Should we officially declare China as the World's Anti Trust Capital?
  • Yes.
  • Time to make own processor Microsoft
  • And they'd have them made in China, just like everyone else...
  • No. China is a player, but not the only location. 1) TSMC Taiwan
    2) Global Foundries USA
    3) IMC Tawain
    4) Samsung South Korea
    5) SMIC China
    6) Powership Taiwan
    7) Vanguard Taiwan
    8) Huahong Grace China
    9) Dongbu South Korea
    10) TowerJazz Israel
    11) IBM USA
    12) MagnaChp South Korea
    13) WIN Taiwan
     
  • You do know that when people say 'like everyone else', they don't mean it literally right?
  • You do know when posting dumb comments on the internet, someone might correct them right?
  • Somehow you not understanding hyperbole makes me an idiot.
  • oh I see it was an attempt at humour, I'm so sorry, in which case don't take my comment literally.
  • Maybe because their Chinese home-grown MediaTek chips cannot compete with Qualcomm on price to efficiency that they need more money to pump into R&D and are looking for money bags... Next, they will sue Google for having a monopoly on mobile OS used in China until they can create their own national Android fork. Just like they sued MS for having monopoly on desktop OS and is planning to replace it with Chinese Linux fork.
  • Android and ios share a fair amount of market in Chinese big cities. Google will not be sued for Android because there is no google service at all in Chinese Android phone. Pls do some research before you comment.
  • I say nuke the fuckers. We're going to have to go to war with them eventually ;)
  • You do know they have nukes too? If there is a war, it will be a proxy war like the US had with Russia in Korea and vietnam.
  • Well i suppose if Qualcomm is willing to put with this crap there must be even mo money to be made by staying.
  • As long as we get our Snapdragon 810 in the Windows 10 Lumia I'm very happy! And don't forget Adreno 430 graphics.
  • China complaining about licensing practices. Pot calling the kettle black.