Qualcomm fined $865 million by South Korea regulators
South Korean regulators fined Qualcomm $865 million, claiming the chip maker violated the country's competition law.
Last year, the Korea Fair Trade Commission accused Qualcomm of unfair practices related to how it licenses its technology.
According to Qualcomm, the decision won't become final until a written order is issued, expected in four to six months. In a statement, Qualcomm says it "strongly disagrees" with the penalty.
"For decades, Qualcomm has worked hand in hand with Korean companies to foster the growth of the wireless Internet," said Don Rosenberg, Qualcomm's general counsel, in a statement. "Qualcomm’s technology and its business model have helped those companies grow into global leaders in the wireless industry. This decision ignores that win-win relationship."
The commission alleges Qualcomm used its dominant position in the modem chip market to force handset makers to pay license fees for a broad set of patents under terms it set unilaterally and to coerce handset makers into signing licensing contracts.
The fine, the biggest ever levied by the antitrust regulator, "will restore fair competition in the mobile communications industry," said Shin Young-sun, secretary general at the Fair Trade Commission, during a briefing with reporters.
Contributing: The Associated Press
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