News & Analysis

Japan probes Qualcomm's practices

Mark LaPedus

7/27/2009 6:24 PM EDT

SAN JOSE, Calif. -- Qualcomm Inc. confirmed that it has received a draft order from the Japan Fair Trade Commission (JFTC).

The ''draft order'' relates to possible unfair business practices in Japan. Qualcomm declined to comment.

Last week, Qualcomm was hit hard in Korea. The company said while it was pleased with the Korea Fair Trade Commission's (KFTC) findings of no violation with regard to much of the complaint brought by the case examiner, it firmly disagreed with the KFTC decision that certain discounts and rebates it provides to its Korean customers on the purchase of its CDMA chipsets are in violation of Korean competition law.

The decision by the KFTC included a corrective order relating to the specific practices at issue and an administrative fine of approximately $200 million.

Qualcomm believes that the fine is excessive and unwarranted. Qualcomm will appeal the decision to the Korean courts and continue vigorously to defend itself against the claims of unlawful conduct.





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