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Qualcomm says it is under monopoly probe in China

Updated: 2013-11-26 17:12
By Shen Jingting (

US-based chipset vendor Qualcomm Inc said it is under an anti-monopoly investigation by the National Development and Reform Commission, the first high-tech multinational to go through such a probe in China.

Qualcomm said on Nov 25 that the NDRC has commenced an investigation relating to Chinese anti-monopoly law. However, the company did not disclose further details.

"The company is not aware of any charge by the NDRC that Qualcomm has violated the anti-monopoly law. We will continue to cooperate with the NDRC as it conducts its confidential investigation," Qualcomm said.

China is Qualcomm's biggest single country market and contributes almost half of its total revenue. China is also the world's largest mobile phone market and boasts more than 1.2 billion mobile service subscribers, a figure that no other country can match.

It is widely expected that China will issue fourth-generation mobile network licenses by year end, and in a September interview with China Daily, Qualcomm's chairman Paul Jacobs pointed out that China's entry into the 4G era will be a major driver for Qualcomm's sales in the country.

Analysts said NDRC's investigation is likely to force Qualcomm to lower licensing fees on Chinese telecom and mobile phone companies.

Meanwhile, the move will help domestic chipset makers to have a bigger say in China's semiconductor industry.

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