US chip manufacturer Qualcomm has been told to pay almost $1 billion to Chinese regulators as part of an anti-trust probe. The payment will end an anti-trust investigation into its patent licensing practices that has lasted for over a year. The fine is the largest in China’s corporate history.
Qualcomm will be forced to lower royalty rates on payments used in China. It’s thought that Chinese smartphone makers including Xiaomu and Huawei will benefit from the decision. Qualcomm said that the ruling, which said Qualcomm violated the country’s anti-monopoly laws, will not be contested. The company said: “Although Qualcomm is disappointed with the results of the investigation, it is pleased that the NDRC (National Development and Reform Commission) has reviewed and approved the company’s rectification plan”.
Qualcomm will now only be able to charge royalties based on 65% of the price of phones in China rather than the full price. It is the biggest supplier of smartphone chips. The company made half of its global revenue in China during its last fiscal year. It has increased its profit and revenue forecast. Reports last year said that the new S6 device will feature one of Samsung’s own processors rather than a Qualcomm chip.
