China: NDRC brands Qualcomm as monopoly

One of the largest manufacturers of mobile chips, Qualcomm, has now been labeled a monopoly in China, according to reports.

State-run media said Thursday that US-based Qualcomm has been deemed a monopoly by China’s National Development and Reform Commission; the development emerged as Qualcomm’s chief executive met with authorities in the nation as China continues to investigation the company.

Qualcomm is being probed by the NDRC for suspicion of abusing its market dominance and other anticompetitive behavior. Its Chinese operations announced in February that it was under investigation, and reports say fines against the company could top $1 billion.

Despite the unconfirmed reports that the NDRC has declared Qualcomm a monopoly, media did not say whether the NDRC has found that the company has abused that monopoly position. Experts believe, however, that the competition authority will announce a decision on the case soon.

Qualcomm is a leading smartphone chipmaker, but reports say it earns most of its profits from licensing its cellphone patents.

Full content: Reuters

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