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Report: China to declare Qualcomm a monopoly

Published on NewsOK Modified: July 24, 2014 at 11:26 pm •  Published: July 24, 2014
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BEIJING (AP) — Chinese regulators have concluded Qualcomm Inc., one of the biggest makers of chips used in mobile devices, has a monopoly, a government newspaper reported Friday.

Regulators have completed an investigation of Qualcomm, the China Daily newspaper said, citing Xu Kunlin, director of the anti-monopoly bureau of the National Development and Reform Commission, China's economic planning agency.

Xu said Qualcomm "has a monopoly," the newspaper said. It gave no indication what possible penalties or orders to change its business practices the San Diego, California-based company might face.

Chinese regulators said earlier they were investigating whether Qualcomm abused its dominant market position by charging excessive fees for technology.

Qualcomm did not immediately respond to a request for comment.

China is the world's biggest manufacturer of mobile phones and other wireless devices. The communist government has complained about the high cost of licenses for foreign technology. It has tried to reduce dependence on foreign know-how by investing billions of dollars to develop its own phone, encryption and other technology.

Beijing is stepping up scrutiny of foreign companies and has cited its 2008 anti-monopoly law in ordering changes to acquisitions or business practices.

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