Chinese phone makers welcome Qualcomm fine
Chinese cellphone makers on Wednesday expressed their support of a record anti-trust fine levied on U.S. chip maker Qualcomm.
The National Development and Reform Commission (NDRC) ruled Qualcomm had abused its market dominance and charged discriminatory fees in the Chinese market when licensing mobile chip technology. The company was ordered to pay 6.09 billion yuan (994 million U.S. dollars).
Telecom giant Huawei told Xinhua that the NDRC’s decision would benefit telecom product manufacturers and Chinese consumers, as well as improve intellectual property protection.
Huawei said the decision would create a fairer competitive environment and would prompt domestic research.
ZTE also welcomed the anti-trust ruling as it would have a significant effect on the global telecom industry.
The NDRC’s investigation began in November 2013. The watchdog said the fine would stop the company’s monopolistic practices, safeguard fair market competition and protect consumers’ interests.
It said Qualcomm improperly bundled unrelated licenses with baseband chip sales, forcing Chinese customers to pay for licenses they did not need.
San Diego-based Qualcomm said in a statement that it would honor the fine and modify its licensing practices.