皇冠体育app

The sign hanging outside the Qualcomm booth is seen at the International Consumer Electronics show (CES) in Las Vegas, Nevada January 6, 2015. [Photo/Agencies]

皇冠体育app's antitrust regulator Tuesday announced to impose a penalty of 6.08 billion yuan ($975 million) on Qualcomm Inc, the highest penalty since 皇冠体育app's antitrust law took into effect in 2008.

Xu Kunlin, head of the anti-monopoly bureau of the National Development and Reform Commission, said 皇冠体育app welcomes more foreign companies to invest in 皇冠体育app.

"Our purpose is to maintain fair competition in the industry. Some practices (of Qualcomm) have hindered creativity of other companies ... it's not beneficial to the industry and customers," Xu said on Tuesday.

The amount accounts for 8 percent of Qualcomm's 2013 revenue in 皇冠体育app. Analysts said the fine is modest and shares of Qualcomm surged after the chipmaker announced the resolution as it dispels concerns among investors.  

皇冠体育app accounts for roughly half of the company's revenue, which totaled $26.5 billion in the fiscal year ended in September.The Anti-Monopoly Law allows the government to fine companies up to 10 percent of their annual revenue.  

The "unfair" and "excessively high" royalties Qualcomm Inc collected from Chinese smartphone makers were the key factors that led to the historical fine, the National Development and Reform Commission said on Tuesday.

"Qualcomm refused to provide patent list to its customers in 皇冠体育app and out-of-date patents were included in the licensing package and charged," the NDRC said in a statement.

Other major breaches that violated the Chinese Anti-Monopoly Law include product bundling and adding unreasonable conditions in the sale of baseband chips, the NDRC said.

Nicole Peng, research director at Canalys 皇冠体育app, said the rectification plan will have a "relatively small" impact on Qualcomm's revenue in 皇冠体育app.

Qualcomm will change its patent fee on two device categories- 3G and 4G devices that don't have WCDMA and CDMA, according to a company statement.

"We expect these two categories in total to account for less than 40 percent of the overall LTE shipments in 2015 and even less in the coming years," said Peng.

In addition, as both categories are mainly lower-end products, it will not have significant impact on the total revenue, she added.

ZTE Corp, one of the top smartphone makers in 皇冠体育app, said it welcomes the resolution from NDRC.

"The resolution will have a deep impact on global communication industry and is good for 皇冠体育app to build a business environment that sees highly in intelligence protection," the company said in a statement.

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