ExtraTorrent | China Started Antitrust Action against US Chipmaker

[Atreides]

Qualcomm is frustrated by the fact that the Chinese police are paying too much attention to the company. Its CEO admitted they has still hadn’t been told why China decided to launch antitrust action against Qualcomm.
 

Indeed, the local National Development and Reform Commission had started an antitrust probe into Qualcomm last November. The company admits that it wasn’t very unusual for governments in different countries to refuse to disclose reasons for their antitrust probes, and the chipmaker has willingly handed over requested documents to the Commission.

The Chinese authority has launched almost 20 pricing-related probes of domestic and foreign companies in the last 3 years, but a few weeks ago state media quoted the Commission saying it had “substantial evidence†against Qualcomm.

Some believe that the Chinese government may be trying to give Qualcomm a Chinese burn to let it have some leverage in royalty negotiations. Others think that the government wants to support local suppliers competing with Qualcomm. China is currently moving to 4G and Qualcomm is recognized as a world leader in the technology.

It is known that the Chinese government spent almost $3 billion to purchase local mobile chipmakers Spreadtrum Communications and RDA Microelectronics, which both have technology competing with Qualcomm’s. The company points out that China had a couple of chipset makers that just got bought by a state university, so there were all sorts of dynamics going on.