The Chinese government imposed a hefty fine to chipmaker Qualcomm that amounted to 6 billion yuan or equivalent to about $975 million. The fine was by far the biggest in terms of the anti-monopoly policy that has shaken various foreign companies operating in China.
China is currently investigating foreign companies including automakers and technology suppliers in its effort to bring prices down. However, many of these companies are not happy about the secretive way the investigation is being done with some of them claiming that the regulators are treating them unfairly.
Currently, China is the worldwide leader in terms of manufacturing mobile phones and other wireless devices, according to Fox Business. The report added that the Chinese government has complained about the extreme prices these companies are imposing for licenses to their technologies.
The settlement between Qualcomm and the Chinese government includes paying the fine and lowering royalty fees on patents being used in China, according to Reuters. This move will most likely help local smartphone manufacturers such as Xiaomi and Huawei the report added.
On Monday, the chipmaker released a statement saying that it will not argue with the decision of the National Development and Reform Commission. Qualcomm president Derek Aberle added, "We fully respect their authority, but we don't believe it's likely that other agencies will necessarily meet similar conclusions."
A separate report reveals that Qualcomm is just one of the many foreign companies charged with anti-competitive practices in China. Among the most notable of these companies to be investigated due to malpractice was Microsoft.