Qualcomm gets million fine in China because of market abuse




The Chinese government chipmaker Qualcomm has given a fine of the equivalent of 860 million euros for abuse of its dominant position. The manufacturer would competitors bring to high remittance license fee for use of wireless technology.

The National Development and Reform Commission, the competition authority of the Chinese government, after research has concluded that Qualcomm has abused its dominant market position. The company was fined a total of 6.088 billion yuan, 8 percent of sales in 2013 on the Chinese market. Converted, the antitrust fine amounts to 860 million euros.

According to the NDR Qualcomm wielded excessive license fees for use of CDMA, WCDMA and LTE technology, which the company has patents on. Qualcomm would be unreasonable to impose conditions upon delivery of its baseband chips, including by requiring customers to purchase multiple licenses, regardless of whether the technology was used.

Qualcomm is known not to go against the penalty decision to appeal and to have reached a settlement with the Chinese government. Among other will disconnect the group 3G and 4G licenses for other patents. In addition, Qualcomm will lower royalties charge to Chinese manufacturers as they do not use CDMA or WCDMA in products.

Past punished include Korean and Japanese FTC Qualcomm down for abuse of a dominant market position. The EU halted an investigation into the conduct of the chip company after Ericsson withdrew his complaints.


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