Taiwan Fines Qualcomm US$773m For Trade Violation

Taiwan Fair Trade Commission’s fine of US$733 million on Qualcomm for violating competition law in the country, is a major step back for the chipmaker which makes bulk of its revenue in patents and its Snapdragon processor.

The investigation by TFTC found Qualcomm having violated certain business practices with its IP on the patents the company collects fees from device manufacturers. Qualcomm however has appealed to the fine amount derived and the methodology it was calculated. No stranger to lawsuits and legal encounters, the component maker has been embroiled with Apple on patent infringement accusing Cuppertino of refusal of payment to vendors for its IP which in return the vendors not passing on the fees to Qualcomm.

Based on a news report by The Verge, the company’s dominance in CDMA and LTE chips as well as major patents holding for both technologies have let it abuse its position and refuse to license necessary patents. It will now have to end these practices and part with the unfavourable deals it forged with its partners.

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