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South Korea hands out $208m fine to Qualcomm

Qualcomm in the dock over anti-trust practices
Qualcomm in the dock over anti-trust practices

The anti-trust organisation in South Korea has handed out a record fine to chip-maker Qualcomm after it said the company had abused its dominant position.

The $208m (£125m) fine is the largest imposed by the Korean Fair Trade commission, meted out after it found Qualcomm had been asking for higher royalties from companies that used rival products.

The chip maker was also found to be giving incentives to customers to use its products over rivals', in a case that strongly mirrored the one against Intel, where a record fine was also levied.

Abused position

"When licensing its CDMA mobile technology, Qualcomm levied higher royalties on companies that used modem chips supplied by rival companies," the commission said.

It also said that Qualcomm had used its position of having 99.4 per cent of Korean market to further strengthen its position, where it currently supplies two of the world's largest mobile phone manufacturers, LG and Samsung.

Qualcomm, which intends to appeal the finding should the fine stand and still proclaims its innocence, has said the ruling could have severe ramifications on the local mobile market, with Samsung and LG having no alternatives to the supplier.

Via Reuters

Gareth Beavis

Global Editor-in-Chief

Gareth has been part of the consumer technology world in a career spanning three decades. He started life as a staff writer on the fledgling TechRadar, and has grown with the site (primarily as phones, tablets and wearables editor) until becoming Global Editor in Chief in 2018. Gareth has written over 4,000 articles for TechRadar, has contributed expert insight to a number of other publications, chaired panels on zeitgeist technologies, presented at the Gadget Show Live as well as representing the brand on TV and radio for multiple channels including Sky, BBC, ITV and Al-Jazeera. Passionate about fitness, he can bore anyone rigid about stress management, sleep tracking, heart rate variance as well as bemoaning something about the latest iPhone, Galaxy or OLED TV.