With one of the largest corporate fines to-date, Qualcomm Inc. was required to pay $975 million to regulators in China for violating China’s Anti-Monopoly Law (AML), their country’s law prohibiting antitrust / anti-competitive practices.
Qualcomm, Inc., a U.S. firm that develops technology for wireless devices (www.qualcomm.com), agreed in the settlement to lower its royalty rates on patents used in China by smartphone makers Xiaomi Technology and Huawei Technologies. The company said it will calculate royalties based on 65% of the selling price of phones sold in China rather than on the whole sale price. Qualcomm, Inc. also agreed to implement a rectification plan that modifies certain corporate business practices in China and that fully satisfies the requirements outlined by China’s National Development and Reform Commission (NDRC).
“[The settlement] removes a significant source of uncertainly from our business and really positions our licensing group to really participate in the full growth of the wireless market in China,” Qualcomm CEO Steve Mollenkopf told Reuters. “It’s something we’re happy is over.”