A probe by the Chinese government into the potential anti-trust violations of Qualcomm might be related to how they’re handing the royalties for their 4G technology. This came after the technology was planned to be rolled out by Chinese telecommunications providers. The telecom providers desired to get this new network up and running, and want to get a leg up on the negotiations for royalties that they will have to pay Qualcomm. Qualcomm has reported that half of its revenue came from China, however, that’s not entirely true as a lot of device manufacturers export most of their mobile devices. Qualcomm is a chipset manufacturer, primarily for mobile devices, but most of their revenue comes from the royalties that others pay for use of their patents. However, they claim that there are no anti-trust violations and that they are willing to comply with the probe by the NDRC to ensure that the Chinese government knows they are in the clear. It’s likely that Beijing wants to give a boost to the local chip manufacturers, and drive out the supposed monopoly of Qualcomm induced by their royalty fees. Chinese regulators will be deciding whether Qualcomm is meeting their FRAND (Fair, Reasonable, and Non-Descriminatory) requirements for royalty pricing.


For more details on the article Click Here