China’s anti-trust investigation into Qualcomm has concluded: report

According to Techweb, China’s year-long antitrust probe of American mobile chip maker Qualcomm has finally come to an end. Sources close to government regulators involved in the investigation have told the Chinese press that the investigation has already concluded, and China’s regulators have come to an agreement with Qualcomm about the results. All that remains is to announce those results, which the sources say will happen at a ‘suitable’ time chosen by the Chinese government.

The news that the investigation has now concluded is in line with a December 26 statement released by China’s National Development and Reform Commission (NDRC), which announced that the investigation was to be settled very soon.

Now that the investigation has concluded, announcement of the results is imminent, and they are not likely to be good for Qualcomm. The company is likely to be slapped with heavy fines, which some pundits suggest could be in excess of US$1 billion.

China’s smackdown of Qualcomm is also bad news for smaller local mobile companies like Xiaomi. Qualcomm chips are widely used in Chinese phones, and the company’s reverse patent license required users of its chips to license patents at no cost to other companies that use its chips. China’s investigation will put an end to that system, meaning that China’s mobile patent-holders – larger mobile companies like Huawei and ZTE – are in a position to price-gouge smaller companies on those patent licensing fees. Xiaomi has already begun to invest more in developing its own IP.

(Source: Techweb)