Home / Technology / South Korea slaps Qualcomm with record-setting $850M fine

South Korea slaps Qualcomm with record-setting $850M fine

South Korean regulators contend that Qualcomm’s patent-licensing methods violate Korean astray foe laws, and a association contingency compensate a excellent of 1.03 trillion won, or about $850 million. Qualcomm has pronounced it will quarrel a massive fine in court.

The Korea Fair Trade Commission, or KFTC, hold that Qualcomm refused to permit certain standard-essential patents on a chips to opposition chipmakers including Intel, Samsung, and MediaTek. The elect systematic Qualcomm to renegotiate those licenses in good faith, according to a Reuters report on a matter. The excellent is a largest ever released in Korea.

In its report on a Korean fineBloomberg records that Qualcomm creates many of a profits, about $6.5 billion in its many new year, from offered a rights to a chip technology.

Qualcomm “has disregarded a agreement to permit patents on fair, reasonable, and non-discriminatory terms, famous as FRAND,” a Commission pronounced in a statement.

In response, Qualcomm issued a statement job a excellent “an rare and insupportable decision, relating to chartering practices that have been in existence in Korea and worldwide for decades.”

Qualcomm also pronounced a KFTC has shown no justification of any mistreat to competition, that it claims is “robust among chip and handset suppliers” since Qualcomm’s indication promotes competition. The excellent undermines incentives to invest.

“Importantly, this preference does not take emanate with a value of Qualcomm’s obvious portfolio,” pronounced Qualcomm ubiquitous warn Don Rosenberg. “Qualcomm’s huge RD investments in elemental mobile technologies and a broad-based chartering of those technologies to mobile phone suppliers and others have facilitated a bomb expansion of a mobile communications attention in Korea and worldwide.”

The KFTC gauge won’t turn central until it issues a created decision and order, that typically takes about 4 to 6 months. Qualcomm has pronounced it will immediately interest during that time. The association will still have to compensate a excellent within 60 days after a created sequence comes out, nonetheless it will be theme to composition or reinstate formed on a appeal.

In a apart box brought by the Korea Fair Trade Commission in 2009, Qualcomm was strike with a $209 million fine, that was a largest in Korea’s story during that time. That excellent is on interest during a Korean Supreme Court, according to Bloomberg.

Last year, Qualcomm was fined $975 million by Chinese anti-monopoly regulators. The company did not plea that decision, that also set rates and conditions for Qualcomm’s chartering in China.

Article source: http://arstechnica.com/tech-policy/2016/12/qualcomm-fined-850-million-by-south-korean-regulators/

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