On October 11, foreign media reported that the Taiwan Fair Trade Commission has imposed a record fine of NT$23.4 billion (approximately RMB 5.1 billion) on Qualcomm for alleged anti-competitive behavior in the mobile baseband chip market. The U.S.-based company has stated it will not accept the findings and plans to challenge both the amount and the calculation method of the fine in court once the official decision is issued in the coming weeks.
Data Map: Qualcomm Patent Wall
Taiwanese regulators claimed that Qualcomm has held a monopoly over key mobile phone standards and refused to supply products to companies that did not agree to its terms. This behavior allegedly violated local antitrust laws for at least seven years, during which time local firms paid over NT$400 billion (around RMB 87.2 billion) in patent licensing fees to Qualcomm.
Qualcomm’s practices have drawn attention from global regulators, with investigations launched in South Korea, China, Japan, and the European Union. The U.S. Federal Trade Commission noted that Qualcomm holds numerous essential patents in CDMA, WCDMA, and LTE technologies and is a major supplier of related baseband chips. The FTC accused the company of abusing its dominant position by refusing to license necessary patents. It is estimated that Taiwanese companies have spent around US$30 billion (approximately RMB 197.66 billion) on Qualcomm baseband chips over the years.
In addition to the fine, the Fair Trade Commission ordered Qualcomm to cancel an agreement with a competitor that required the other party to disclose sensitive information such as pricing, customer names, shipping methods, and model details. (Internship Compilation: Peng Zhaozhi Reviewer: Li Zongze)
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