Chinese regulators fined Qualcomm with $975 million after the U.S. chip maker company was found guilty of breaching national antitrust regulations.
As reported by Techcrunch, the company did not contest the penalty and agreed to pay the fine. It will not change its business model in China but has agreed to split its 3G/4G essential patents separately to other licenses. However, the company did express its disappointment with the result of the investigation which had been ongoing for more than an year.
The investigation had affected Qualcomm’s financial performance and stock price, which faced its highest drop in over three years. Customers delayed their royalty payments and underpaid Qualcomm as they were unsure of the firm’s legal status in the country. Since the matter has been settled now, the stock prices of the company are expected to rise again.
Qualcomm is an American global semiconductor company that designs and markets wireless telecommunication products and services. It makes processors in various configurations used in gadgets ranging from tablets to smartphones. Their flagship product is the Snapdragon processor.