Chipmaker Qualcomm agrees to pay the Chinese government $975 million – that’s the largest fine ever in China’s corporate history – to settle a 14-month long probe into alleged anti-competitive practices. China’s government found that Qualcomm violated an anti-trust law and the company said it would not contest the findings. The deal also requires Qualcomm to lower its royalty rates on patents used in China. And that will likely help companies in China that make smartphones.There are other anti trust investigations into Qualcomm’s practices taking place in both the U.S. and Europe. The President of Qualcomm said the company fully respects China’s authority but doesn’t believe other agencies will necessarily meet similar conclusions. Because of the $975 million dollar fine, the U.S. chipmaker cut its full-year earnings estimates. Qualcomm is just one of several overseas companies, including Microsoft, that have come under investigation in China for alleged anti-competitive practices.
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