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After China Settlement, Korea Now Eyeing Qualcomm

Feb 12, 2015, 8:19 AM by Eric M. Zeman

South Korea's Fair Trade Commission is weighing whether or not to investigate Qualcomm's business practices. Regulators there believe Qualcomm may have abused its position as the largest chipmaker to charge higher royalty rates for its patents. Qualcomm sells application processors and modems to smartphone manufacturers and generates the bulk of its money from royalty rates. Handset makers in Korea and other markets claim Qualcomm overcharges and China recently agreed. Earlier this week, Qualcomm agreed to pay Chinese regulators a fine of $975 million and change the way it calculates its royalty rates. Korean regulators want to know if Qualcomm violated its antitrust laws. Such an investigation could have a domino effect, causing more regulatory bodies to pay attention to Qualcomm's way of doing things. Qualcomm didn't comment on the situation.

Wall Street Journal »

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Comments

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This forum is closed.

Versed

Feb 12, 2015, 5:25 PM

Not a fan of Qualcomm, but?

In no way I'm a fan of Qualcomm, but I always find it odd that countries and trading blocks like to fine or go after anti-trust practices of everyone but their own companies? And the US is no better they do it too.

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