The famous SoC manufacturing company Qualcomm, has been under investigation for abusing its patents. The fair trade commission of South Korea was looking into the company for the past 17 months under the charges of abuse of patents.
The investigation was concluded and Qualcomm could receive a fine of 1 trillion won or around $900 million dollars. The first verdict for the case is to be presented on 20th July. If Qualcomm is found guilty of these charges, they will receive the largest fine ever issued by the Fair Trade Commission (FTC).
An FTC official has stated that Qualcomm has been charging the manufacturers based in Korea an excessively high fee for licensing. This violates the regulations of fair market competition.
Speaking with The Korea Times, an FTC official said,
Qualcomm has been collecting royalty fees from mobile phone manufacturers based on certain fixed rates from the suggested price of a mobile device.
What this means is that instead of demanding the same price for a chip used in two different smartphones, Qualcomm charged more money from the company if the chip was used in a more expensive smartphone.
It has been further reported that Qualcomm has collected 1 trillion won from Korea based manufacturers such as LG and Samsung every year.
If Qualcomm turns up guilty following the verdict, it could create a massive headache for the company as 16% of its sales are from Korea.