Qualcomm, the world’s largest supplier of mobile chips, has agreed to pay 6.088 billion yuan fine to end a 14-month long government probe in China for anti-competitive practices.
The United States-based company said on Tuesday that it has reached a resolution with the National Development and Reform Commission (NDRC), a policy agency under the State Council which investigated the firm under China's Anti-Monopoly Law.
The fine was the largest imposed against a company on the mainland, but it was lower than recently reported estimates. The Securities Times had earlier speculated that the penalty could reach 10 billion yuan.
The NDRC has issued an Administrative Sanction Decision finding that Qualcomm has violated the anti-monopoly law.
Qualcomm said it will not pursue further legal proceedings contesting the NDRC’s findings as it agreed to implement a so-called rectification plan, which was designed to fully satisfy the requirements of the NDRC’s order.
Qualcomm has played an important role in the success of the mobile and semiconductor industries in China for many years, and we look forward to building upon this foundation as we grow our investments, engagement and business in China
Qualcomm president Derek Aberle admitted last month that the government investigation was disruptive to its business on the mainland, which saw the company agree to a settlement with one licensee.