Qualcomm takes a $773 million hit in its fight against Apple

Reuters

Reuters

Taiwanese authorities have imposed a record fine of almost $800 million on Qualcomm for antitrust violations in the latest of a string of setbacks for the United States computer chip giant.

A San Diego-based company hit with a multi-million dollar fine by the Taiwan Fair Trade Commission (TFTC) following an investigation says it will be appealing the decision.

"Qualcomm's illegal actions have seriously affected the (market) competition.to ensure, maintain or enhance its dominance in the market", the commission said in a statement late Wednesday.

Qualcomm Inc faces an antitrust fine in Taiwan, the latest in a years-long streak of regulatory setbacks to its business model that comes as it also fights USA regulators and iPhone maker Apple Inc in court over numerous same legal issues. According to FTC, local companies purchased around US$30 billion worth of Qualcomm's chips, which is way more than the fine it was dealt with.

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The world's biggest handset chip supplier said Thursday it would appeal the fine. This is not the first time that Qualcomm has been fined, South Korea and China have also fined Qualcomm in the last 2 years and Apple is involved in a series of lawsuits globally against Qualcomm over similar practices.

By not providing products to its clients who don't agree to its terms, Qualcomm is abusing the monopoly it has in the business, therefore violating the local anti trust laws.

Apple has also joined efforts in other countries where Qualcomm faces probes from antitrust authorities. While the regulatory and legal attacks differ in some details, a key theme is the allegation that Qualcomm uses its dominant position in the market for modem chips to charge unfair royalty rates for its patents.

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