Published: Thu, October 12, 2017
Business | By Max Garcia

Qualcomm takes a $773 million hit in its fight against Apple

Qualcomm takes a $773 million hit in its fight against Apple

Qualcomm has been hit with a almost $774 million fine by Taiwan's Fair Trade Commission, which said today that the chip maker abused its monopoly over smartphone modems to squeeze higher licensing fees and better terms out of its customers.

Taiwanese regulators state Qualcomm has been breaching antitrust rules for at least seven years.

In December, South Korea imposed a fine of US$854 million on Qualcomm for violating its competition laws after another fine of US$975 million was slapped by China for a similar case in 2015.

It'll take weeks before the court issues a final word on the matter, and according to Qualcomm, the fine that it's charged with has "no rational relationship to the amount of Qualcomm's revenues or activities in Taiwan". The company is engaged in a fierce battle with Apple Inc. that has seen the iPhone maker cut off billions of dollars in payments to Qualcomm.

The FTC announced a day earlier that it has made a decision to impose a fine of NT$23.4 billion on Qualcomm, accusing the USA tech giant of violating the country's Taiwan Fair Trade Act by taking advantage of its monopoly status. It said Taiwanese companies had purchased $30 billion worth of Qualcomm baseband chips.

An afternoon recap of the day's most important business news, delivered weekdays. "It abused its advantage in mobile communication standards, refused to license necessary patents.".

The FTC also ordered Qualcomm to drop existing agreements that force competitors to provide sensitive information such as pricing, customer names, shipments and model names, Bloomberg reported.

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