Qualcomm has been fined KRW 1.03 trillion (USD 865 million) by the Korea Fair Trade Commission for violating competition law with its licensing practices. The company was found to have refused to licence or restricted the licensing of its patents essential to mobile technology standards. Qualcomm also attempted to tie supplies of its chipsets used in mobile phones to granting the licence and impose other onerous conditions in its contracts.
The FTC already fined Qualcomm KRW 260 billion (USD 235 million) in 2009 after concluding that it abused its dominant position in selling chips to mobile phone makers in Korea. The latest fine against the US-based chipmaker is the largest the Korean regulator has ever imposed.
Qualcomm said it plans to appeal the decision to the Seoul High Court, once it receives the full written decision, expected in 4-6 months. It will be expected to pay the fine within 60 days of receiving the written statement.
The company has contested the FTC's arguments since it first laid out its case a year ago. Qualcomm claims the regulator has "no coherent theory of competition law" and has not shown the company's practices harmed competition. Furthermore, the company's licensing deals are in line with established practices in use for years in the market.
Qualcomm also plans to appeal against how the fine was calculated, saying the amount is not in line with its presence on the Korean market. The FTC estimates Korea accounts for about 20 percent of Qualcomm's global sales. In addition, Qualcomm claims is was denied fair procedural rights during the case, as required under Korea-US trade agreements.
