Menu
China probing allegations that Qualcomm overcharged local clients

China probing allegations that Qualcomm overcharged local clients

Regulators are also investigating U.S. company InterDigital for overcharging clients

A Chinese anti-monopoly investigation into Qualcomm is examining whether the U.S. company has been abusing its market position and overcharging clients, the nation's regulators said.

The National Development and Reform Commission (NDRC) had previously been mum on the investigation, but on Wednesday confirmed that it has been probing Qualcomm since November.

The investigation was sparked off by complaints from groups that alleged the U.S. company had been abusing its market dominance to charge higher fees, said Xu Kunlin, the head of NDRC's pricing supervision and anti-monopoly bureau, at a press conference.

The investigation is still in its early phase, and much more work needs to be done, according to the commission. In November, Chinese regulators conducted a surprise raid of two Qualcomm offices in China for documents.

Qualcomm originally mentioned NDRC's anti-monopoly probe back in November, but offered no details. The company has said it is cooperating with the investigation.

Its chips are in use by many local smartphone vendors in the nation. In last year's fourth quarter, both domestic and foreign handset makers shipped 100 million smartphones to China, now the world's largest market for them, according to research firm Canalys.

The NDRC said its anti-monopoly investigation reflected the complaints from clients, and was not part of any effort to foster China's domestic chip industry.

The commission last year also launched an anti-monopoly investigation into InterDigital, a U.S. company that holds 20,000 patents, but has drawn accusations of "patent trolling". In China, complaints were made that the company has been overcharging its clients over patent licensing, according to the NDRC.

In InterDigital's case, the company has made positive steps at cooperating with the anti-monopoly probe, the regulator said on Wednesday. As a prerequisite to end the probe, InterDigital has to agree to certain commitments to the NDRC.

The company has already filed to end the investigation, said Lu Yanchun an official with NDRC's pricing supervision and anti-monopoly bureau. The commission is studying the case, and will then make a decision in accordance with the law.

In December, InterDigital had alleged that Chinese regulators were threatening to arrest company employees as part of the anti-monopoly investigation. But earlier this month, the company said it had misunderstood NDRC's procedures and was cooperating with the nation's authorities.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags intellectual propertyregulationpatentlegalqualcommgovernmentInterDigital

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments