Qualcomm Disputes RM3.8 Bln Antitrust Fine In Korea

Korean government slapped $865 million (RM3.8 billion) on Qualcomm for violating competition law in the country. Free Trade Commission accuses the chip maker of breaching the lands antitrust guidelines with regards to the chipmaker’s providing lack of access to its patents. Regulators also found the company forcing mobile phone manufacturers to unfair license agreements and refusing supply of key processors to those who did not agree to the terms provided.

Qualcomm which will have to pay the fine within 60 days does not agree with the claims, it believes the facts and the law is flawed in its process and finds it a violation of rights of American companies under the Korea-US trade agreements. Based on a statement the released the compnay highlight the lack of coherent theory of competition law violation, lack of any evidence of harm competition, which is robust among chip and handset suppliers in part because of its business model which promotes competition.

 

The royalties received by Qualcomm for sales of handsets into Korea accounted for less than three percent of total licensing revenue for 2016.

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