Qualcomm hit with a $774 million fine by Taiwan’s Fair Trade Commission

Qualcomm continues to be in legal battles with different companies all over the globe. This time, the company just suffered a loss in Taiwan. Qualcomm has been fined $774 million by the Taiwan’s Fair Trade Commission. Taiwan’s FTC said today that the chip maker abused its monopoly over smartphone modems to charge higher licensing fees and better terms from its customers.

Taiwan isn’t the only country to go after Qualcomm over its expensive licensing terms. Child and South Korean both have fined the company in the last two years. Furthermore, even Apple is now engaged in a series of global lawsuits against Qualcomm due to the same practices.

Taiwan’s Fair Trade Commission states that Qualcomm’s dominance in CDMA and LTE chips, as well as a major patent holder in both areas, allowed the company to abuse its monopolistic position. The company will now be required to end such practices and end unfavorable terms with other companies.

Qualcomm on the other hand disagrees with the ruling. The company plans to appeal the ruling and fine. “The fine bears no rational relationship to the amount of Qualcomm’s revenues or activities in Taiwan, and Qualcomm will appeal the amount of the fine and the method used to calculate it,” the company said in the statement.

The company continues to struggle with legal battles all over the globe. Qualcomm makes most of its money from licensing patents and the portfolio it holds. Because of the portfolio, the company has been known to go after unfavorable terms with other companies that not only suppresses them but also considers higher favors for themselves. This type of business the company conducts is now under scrutiny all over the world and is facing legal challenges.

CategoriesBusiness Legal
Hamza Khalid

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