CFO
Menu
  • Accounting & Tax
  • Banking & Capital Markets
  • Growth Companies
  • Human Capital & Careers
  • Risk & Compliance
  • Strategy
  • Technology
  • Sign InSign Up
CFO
  • Conferences
  • Webcasts
  • Research
  • White Papers
  • Jobs
  • Training
  • Newsletters
  • Magazine
CFO
The Ongoing Evolution of FP&A
Global Survey Identifies 7 Key Insights
Square Root Costing: A Better Method
Square root costing is the only costing…
Does Diversity Pay Off?
CFOs Look to Quantify Inclusion Initiatives
  • Accounting & Tax
  • Banking & Capital Markets
  • Risk & Compliance
  • Human Capital & Careers
  • Growth Companies
  • Strategy
  • Technology
Regulation

Qualcomm Hit With Record $865M Fine in Korea

South Korea's top trade regulator says the company's patent licensing practices were unfair to both smartphone makers and rival modem chipset makers.

Matthew Heller
December 29, 2016 | CFO.com | US
share
Tweet
Print

Email this article

South Korea’s top trade regulator has fined Qualcomm a record 1.03 trillion won ($865 million) after finding the company’s patent licensing practices violated competition laws.

The Korea Fair Trade Commission (KFTC) said Qualcomm’s patent licensing was unfair both to mobile phone makers and rival modem chipset makers. The fine is the largest ever levied by the commission against a corporation.

Recommended Stories:
  • China’s ZTE Banned From Using U.S. Parts
  • Fed Proposes Simpler Capital Rules for Banks
  • Complying for Security’s Sake

“Qualcomm has refused to license competing chipset companies while coercing unilateral license terms on handset companies in order to strengthen its monopolistic power in the patent license market and the chipset market,” the commission said in a news release.

Qualcomm supplies smartphone chips to LG Electronics and Samsung, but makes most of it money by licensing its vast portfolio of wireless patents on key cellular technology. The company said the KFTC’s decision was “unprecedented and insupportable” and it would appeal once the commission issues a written order.

“Qualcomm strongly believes that the Korea Fair Trade Commission findings are inconsistent with the facts, disregard the economic realities of the marketplace and misapply fundamental tenets of competition law,” Don Rosenberg, the company’s general counsel, said.

According to the commission, Qualcomm has restricted competition by forcing smartphone makers that buy its chips to also license its patents and by refusing to license, or limiting licensing, of its standard essential patents related to modem chips to rival chipmakers such as Intel, Samsung, and MediaTek.

“Qualcomm’s actions limit overall competition,” KFTC Secretary General Shin Young-son told a media briefing, adding that the decision was not about protecting domestic companies such as Samsung and LG.

Qualcomm said its patent royalties collected on smartphones sold in South Korea amounted to less than $230 million for its 2016 fiscal year.

The decision “marks the latest antitrust setback for Qualcomm’s most profitable business of licensing wireless patents to the mobile industry, at a time when the business is facing headwinds from a cooling smartphone market,” Reuters said.

In 2009, the KFTC fined Qualcomm 273 billion won in 2009 for abusing its dominant position in CDMA modem chips.

Post navigation

← VW Buys Canadian Mobile Payments Company
U.S. Goods Trade Deficit Rises 5.5% to $65.3B →

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Popular Articles

  1. 10 Habits of Highly Effective CFOs
  2. No Mystery How to Restrain Health Costs
  3. Zero-based Budgeting Is Surging
  4. Pay Ratio Disclosures Mislead Investors
  5. No More Tax Deductions for Bad Actions
Advertisement
 

Topics

  • Accounting & Tax
  • Banking & Capital Markets
  • Human Capital & Careers
  • Growth Companies
  • Risk & Compliance
  • Strategy
  • Technology

Media

  • Videos
  • Whitepapers
  • Research
  • Magazine

Events

  • Conferences
  • Argyle Events
  • Webcasts

Services

  • Reprints
  • Back Issues
  • Mobile
  • Widgets
  • RSS

About CFO

  • About CFO
  • Editorial Staff
  • Press
  • Advertise
  • Contact Us

Want the Magazine?

Relax and unplug with our award-winning coverage.

Subscribe Now
Follow Us