Qualcomm Fined $975 Million by China’s NDRC

Qualcomm says it has reached agreement with China’s National Development and Reform Commission (NDRC) regarding the Chinese authority’s investigation of Qualcomm under China’s anti-monopoly law (AML).

The NDRC found that Qualcomm was in violation of the AML and fined the company approximately $975 million, which Qualcomm said it will not contest. In addition, Qualcomm agreed to implement a rectification plan that will modify certain of its business practices in China and which will fully satisfy the requirements of the NDRC’s order. The key terms of the plan include Qualcomm offering licenses to its current 3G and 4G essential Chinese patents separately from licenses to its other patents. For licenses of its existing 3G and 4G essential patents, the company will change its royalty charges.

Following Qualcomm’s announcement, South Korea’s Fair Trade Commission was reported to be considering launching its own investigation into Qualcomm’s dominant market position in South Korea.