Qualcomm, a giant chip maker from the US, has been panelized for $873 million by a South Korean court on Wednesday. According to the court, the company performed illicit business activities associated with modem chip sales and patent licensing.
Seoul High Court Judge Noh Tae-ak declined Qualcomm’s appeal against the fine, as the company had mistreated its dominance in the market, according to the Korea Fair Trade Commission (KFTC), who imposed a fine on the company in 2016.
The court’s decision proved a robust jerk for the company since it is already confronting legal actions taken by customers over antitrust violations and royalties. The US Federal Trade Commission has also sued Qualcomm saying the company has wrongfully suppressed competitors in the wireless chip market.
Noh Tae-ak said in his decision that the defendant posed an impact over mobile phone companies either by influencing them to be dependent on the company for modem chip supply or making illicit relationships.
The court though banished his ruling that Qualcomm was unfair to smartphone makers by agreeing on vital licensing deals.
Don Rosenberg, Qualcomm Executive Vice President, said in a statement that the company opposes the court’s decision to accept parts of the KFTC and will promptly request an appeal.
Qualcomm is one of the largest mobile phone chip suppliers, which extracts its maximum gains from the business segment that comprises technology inventions and licensing. The organization figure between $1.3 billion and $1.5 billion in income for that portion of its fiscal first quarter, above examiner desires, as per IBES information from Refinitiv.