EU/US: Qualcomm woes in China compound with new probes

Qualcomm, currently being investigated by competition authorities in China, revealed Wednesday that its 2015 profits will likely take a hit thanks to additional investigations launched in the US and EU.

Qualcomm, which holds the world’s top spot for smartphone chip manufacturing, said both the Federal Trade Commission and the European Commission are both investigating its licensing and manufacturing business practices. Reports say the cases are scrutinizing whether Qualcomm licenses its patents under FRAND terms.

The company noted that the investigations were in their preliminary phases.

The two probes follow a high-profile case launched by China’s National Development and Reform Commission into Qualcomm’s market dominance and business practices. Reports emerged earlier this year that the NDRC has labeled Qualcomm a monopoly.

Since, some critics argue that Chinese officials are unfairly targeting foreign companies to protect domestic competition.

Full content: Bloomberg

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