China

Chinese Regulator’s Findings Over Qualcomm’s $QCOM Alleged Monopolies Almost Confirmed

This article was originally published on August 19, 2014 at 10:41 pm

Summary:

  • The National Development and Reform Commission (NDRC) is finalizing its investigations into Qualcomm (US: QCOM) and has “almost confirmed’ monopolies, as reported  by Sina.
  • Derek Aberle, the President of Qualcomm, will have a further conversation with the Chinese regulator this week.

Why It Matters:

  • Aberle has had talks with the NDRC three times: on April 3, May 5 and July 11. The article suggests that the Chinese regulator has kept increasing pressure on the company. On July 30, the State Council fired Xinhu Zhang, a senior consultant to the Chinese government on anti-trust issues, claiming he received RMB 6 million in bribes from Qualcomm.
  • The article suggests that the Chinese government may consider a US$ 236 million fine, similar to the anti-trust penalty imposed on Qualcomm by South Korea four years ago. Sina suggests that the Chinese and South Korean governments had discussed anti-monopoly issues several times in May and June.