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Qualcomm hit with record anti-trust fine in China

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#1 sChiZoO14



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Posted 11 February 2015 - 12:30 PM

Qualcomm has been hit with a record $975 million (£640m) fine from the Chinese authorities following an anti-trust investigation.

The US chip maker will also be forced to lower its royalty rates on patents licensed to Chinese manufacturers, after being penalised for violating anti-monopoly laws.

The company must now charge royalties based on 65% of a phone's selling price in the Chinese market, rather than the entire cost.

Qualcomm has issued a statement expressing its disappointment in the ruling, but confirmed that it will comply with the order.

"Although Qualcomm is disappointed with the results of the investigation, it is pleased that the NDRC (National Development and Reform Commission) has reviewed and approved the company's rectification plan," said the company.

Qualcomm, the world's biggest supplier of smartphone chips, derives around half of its global revenue from China.

Digital Spy