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The Korea Herald
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THE INVESTOR
March 29, 2024

Mobile & Internet

Qualcomm begins legal fight against Korea’s antitrust watchdog

  • PUBLISHED :February 22, 2017 - 14:52
  • UPDATED :February 22, 2017 - 15:35
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[THE INVESTOR] Qualcomm has filed complaints against the Korea Fair Trade Commission that slapped the US chip giant with its largest-ever fine of 1.03 trillion won (US$903 million) for violating the nation’s competition laws in December.

The complaints were filed with the Seoul High Court on Feb. 21, a day before the deadline of the appeal. 


Qualcomm CEO Steve Mollenkopf



Related:
Samsung, LG to save W1tr royalty fees on Qualcomm ruling
Qualcomm refutes FTC charges, vows to appeal decision
Korean, US rivals play key role in FTC probe


Sources said the antitrust watchdog is also setting up a task force team to deal with the fierce legal battle. Some big law firms are expected to join the case to represent the agency.

“The key issue is Qualcomm’s decadeslong business practices that have helped the chip maker maintain its No. 1 market position. It will be a complicated and time-consuming fight,” said a legal source who declined to be named.

“The result will also affect similar cases pending around the world.”

On Dec. 28, the FTC fined Qualcomm and its two affiliates for breaching the nation’s competition laws by coercing smartphone and chipmakers to accept unfair patent licensing deals.

According to the agency’s finding, Qualcomm arm-twisted smartphone makers, including Samsung, LG and Apple, to purchase a bunch of processor and network connection licenses, including some they don’t need, and charged excessive royalty fees.

The chip company was also found to have shared less of its standard essential patents, which should be offered under non-discriminatory terms to any counterpart, while offering them to a selective few that agreed to unfair contract conditions.

But Qualcomm refuted the decision, calling it “unprecedented and insupportable.”

Industry watchers predict Qualcomm will make all-out efforts to win the case, hiring large law firms around the world. The company has been under scrutiny on similar charges in the US, Europe and China. Last month, Apple filed a suit against the firm for antitrust activities.

Qualcomm, taking advantage of its dominant position in the global communications chip market, has earned an annual 1.5 trillion won in royalty fees in Korea alone. The total revenue through unfair business practices has reached 38 trillion won over the past seven years.

By Lee Ji-yoon (jylee@heraldcorp.com)

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