Chipmaker Qualcomm has pledged to appeal a $851.07 million fine imposed on the company by South Korea‘s Fair Trade Commission for alleged anti-competitive practices.
The FTC found Qualcomm to be in violation of Korean competition law with its licensing practices for key mobile chipset patents.
The agency held that Qualcomm had been abusing its dominant market position by forcing handset makers to pay royalties on patents they do not need as part of sales of modem chipsets, and also ordered Qualcomm to renegotiate supply agreements with handset makers if requested.
But in a statement, Qualcomm called the ruling “unprecedented and insupportable,” noting that the licensing practices in question have been in place in Korea and worldwide for decades.
The FTC also previously reviewed but did not question these practices during an earlier investigation into Qualcomm, the statement adds. The agency previously fined Qualcomm around $225 million in 2009.
Qualcomm pledged to file for an immediate stay of the order and appeal the KFTC’s decision to the Seoul High Court, as well as appealing both the size of the fine and the methodology used to calculate it.
“Qualcomm strongly believes that the KFTC findings are inconsistent with the facts, disregard the economic realities of the marketplace, and misapply fundamental tenets of competition law,” Qualcomm EVP and general counsel Don Rosenberg said.
Full Content: Telecom Asia
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI