Feeds

Report: Beijing watchdog reckons chip-slinger Qualcomm has monopoly in China

Still investigating whether it is abusing position

Beginner's guide to SSL certificates

Beijing’s anti-competition authority, currently midway through a probe of Qualcomm, has reportedly said it believes the chipmaker does have a monopoly in China.

The chip giant has been under investigation by the National Development and Reform Commission for allegedly overcharging and abusing its market position in China, a region that provides a hefty portion of the firm’s sales and patent royalty revenue.

Sources whispered to state-run newspaper The Securities Times today – translated by Google and by Reuters – that the regulator did believe Qualcomm had a monopoly but had not yet determined if the firm was abusing that hold on the market.

Qualcomm is accused of charging lower royalties for its patents in order to undercut competition and keep its tight grip on the market. The paper also said that since the firm was the only provider of chips for high-end mobes, it was dictating licensing fees.

The company did not respond to a request for comment from The Reg and its chief exec, Steven Mollenkopf, who is currently in China, refused to take questions from reporters.

According to The Securities Times report, NDRC is looking into both Qualcomm and its customers and its investigation is “extremely serious”. The paper said that while Qualcomm’s share of patents relating to wireless network tech standards has fallen, its prices haven’t changed.

The Chinese regulator can levy fines of between one and 10 per cent of a company’s revenues in the country for anti-competitive behaviour, which could lead to a record fine of more than a billion dollars for Qualcomm.

Although the firm announced solid results for the third quarter yesterday, the reception was marred by investor concern over the situation in China. Shares dropped 5.15 per cent to $81.60 as shareholders worried whether the chipmaker’s performance can continue if the investigation doesn’t go its way. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.