Date
18 October 2017

NDRC launches anti-trust probe on Qualcomm, report says

The National Development and Reform Commission (NDRC) has launched an anti-trust investigation on US chipmaker Qualcomm after an industry group complained that Qualcomm’s business model has hurt the Chinese mobile phone sector, state-backed China.com reported Sunday. Wang Yanhui, Secretary General of Mobile Phone China League, was quoted as saying that more than 20 of the group’s members, including ZTE Corp. (00763.HK, 000063.CN), Coolpad Group Ltd. (02369.HK) and some chipmakers, have accused Qualcomm of overcharging them on patent fees and also of forced tie-in sale. Such practices may put the industry in a similar situation to that of DVD makers, which are operating at low margin with patents controlled by others, Wang said. Meanwhile, Qualcomm said it has been fully cooperating with the NDRC in its investigation, the report said.

– Contact HKEJ digest@ejinsight.com

TL/AC/RC

 

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