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China: Qualcomm facing US bribery suit as antitrust fines loom

By  |  April 24, 2014
China: Qualcomm facing US bribery suit as antitrust fines loom

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.

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    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

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