Being hit by an antitrust lawsuit is not something that companies look forward to, as Google can attest over their Android mobile operating system. Still, antitrust lawsuits do seem to be inevitable from time to time, and Qualcomm themselves, after going through 14 months of a government investigation in terms of their alleged anti-competitive practices in China, might very well cost the company a whopping fine to the tune of $1 billion.
Some of the alleged anti-competitive practices include the likes of price fixing and taking advantage of its dominant position as the leader in the market close to the point of abuse, but it looks as though Qualcomm is close to arriving at an understanding with China’s National Development and Reform Commision (NRDC).
Apart from the $1 billion fine being extremely likely, it does look as though the deal would be announced pretty soon – as early as next Monday, in fact, and Qualcomm could be asked to lower its royalty rates by up to 33% of what they are currently charging in order to comply. If fined, it would definitely be a new record for any company – local or otherwise, that runs their operations over in China. While this fine is a huge amount, Qualcomm stands more to lose in the long run if they were not to do business with China.