Report: Qualcomm Charged With Unfair Licensing Practices In South Korea
Trouble for Qualcomm (NSDQ: QCOM) in South Korea. The country’s competition regulator has charged the chip maker with unfair licensing terms, as well as charges that the San Diego-based company acknowledged earlier, according to Reuters, citing an unnamed source.
The Korean Fair Trade Commission (KFTC) has charged Qualcomm with setting “unreasonable and discriminatory terms for licensing its patents,” which it said harms competition in the market and ultimately raises cellphone prices for consumers.
Qualcomm said shortly after the KFTC informed them of their inquiry three years ago that the charges were related to its distribution of mobile video software solutions that could be used in Qualcomm’s chipsets for wireless phone, as well rebates and discounts it gives its chip customers. A Qualcomm spokesperson told Reuters that they “stand by our characterization of the allegations as stated when the Case Examiner’s Report [from the KFTC] was issued.”
South Korea is one of Qualcomm’s “key” markets, since its customers there—Samsung and LG—are two of the world’s top five handset makers in the world, where the South Korean press estimates it earns 2.5 trillion to 3 trillion won ($2 -$2.4 billion) in revenues.
Qualcomm said that its rival American chipmakers, Texas Instruments, and Broadcom, both complained about its actions. Privately held South Korean firms Nextreaming Corp and Thin Multimedia have reportedly also complained to the KFTC about Qualcomm. A decision is expected in July. If found guilty, the chip maker could be fined and forced to change how it does business in the country. Qualcomm is facing a similar investigation for anti-competitive behavior in the European Union.
Posted In: Legal, Regulatory, Mobile, Companies, LG, Qualcomm, Samsung, Countries, Asia, Korea

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