CHINA’S antitrust regulator has confirmed that Qualcomm Inc., one of the world’s biggest mobile chipmakers, has a monopoly, the Securities Times newspaper reported Thursday, as Qualcomm’s chief executive held talks in China.
The regulator, the National Development and Reform Commission (NDRC), is investigating Qualcomm’s local subsidiary after it said in February the U.S. chipmaker was suspected of overcharging and abusing its market position. In wireless communication standards, allegations could see it hit with record fines of more than US$1 billion.
The Securities Times report, based on unidentified sources it said were close to the NDRC, did not say whether the regulator had determined that Qualcomm had abused its monopoly.
The newspaper said Qualcomm was charging lower royalties for patents to undercut competitors who have similar technology and maintain market share. The report also said that Qualcomm, as the only provider of chips for high-end phones, can dictate those licensing fees.
The Securities Times report said the NDRC was probing Qualcomm’s local sales data and that Qualcomm president Derek Aberle has been communicating with the NDRC over issues relating to the anti-monopoly investigation.
While Qualcomm’s share of patents relating to wireless network technology standards for mobile communications has fallen, their prices haven’t changed, the report said.
Under China’s 6-year-old anti-monopoly law, the NDRC can impose fines of between 1 and 10 percent of a company’s revenues for the previous year. Qualcomm earned US$12.3 billion in China for its fiscal year, which ended Sept. 29, or nearly half of its global sales.
Qualcomm has previously said it is cooperating with the investigation. (SD-Agencies)
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