It seems that Qualcomm could be in a bit of legal trouble because according to a report from The Wall Street Journal, the company could be facing a massive $853 million fine imposed by South Korean regulators who claim that the company has engaged in antitrust activities. This fine, if it were to be imposed, would also be the highest penalty handed to an individual company in the country.According to the regulators, they claim that after a 3-year investigation that they found that Qualcomm had breached the country’s antitrust laws by limiting the patents that can be accessed or licensed by its competitors. They also claim that Qualcomm had refused to supply crucial components to phone manufacturers who did not agree to their licensing terms.
Regulators are also claiming that Qualcomm had leveraged their position in the market to force them to accept unfair conditions, although these are all allegations that Qualcomm is refuting. According to Dan Rosenberg, Qualcomm’s general counsel, “It’s a false reality they’ve created of what this industry looks like, what its history has been, what our role has been.”
He also adds that the practice of licensing that the company engages in is considered to be an industrywide norm. To that extent Qualcomm is expected to be contesting the decision.