A PYMNTS Company

China: Qualcomm facing US bribery suit as antitrust fines loom

By  |  April 24, 2014

US chipmaker Qualcomm revealed Wednesday that it is facing legal action by the nation’s Securities and Exchange Commission over questionable business practices in China, where the company still faces an antitrust probe and possible fines of up to $1 billion.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The company is reportedly suspected of bribery of state-owned company officials in China. Qualcomm conducted an internal investigation of the matter after first learning of the SEC’s probe in 2012; Qualcomm said Wednesday its own probe found evidence that “special hiring consideration, gifts or other benefits were provided to several individuals associated with Chinese state-owned companies or agencies.”

    Now, the company said, the SEC could file a lawsuit against Qualcomm.

    The legal troubles only compound accusations over questionable business practices in China, where the company is still facing an investigation into allegations of dominance abuse. According to reports, as the smartphone industry slows in the US but accelerates abroad, especially in China, Qualcomm will need to strategically handle these cases to remain a competing force in the market.

    Full Content: Chicago Tribune

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.