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China fines Qualcomm $975 million in antitrust ruling

Wow... looks like Qualcomm will be getting out of the Chinese market.



I am not sure what to think about this. Part of me does believe that Qualcomm operates somewhat of a monopoly on modem technology... and it's better for consumers that these Chinese companies are allowed to compete. On the other hand, Qualcomm is a US company based in San Diego, California. I dislike the idea of Qualcomm being beholden to another countries anti-trust laws.

I wonder how much Tim Cook's visit to China had to do with this.
 
oobydoobydoo said:
Wow... looks like Qualcomm will be getting out of the Chinese market.



I am not sure what to think about this. Part of me does believe that Qualcomm operates somewhat of a monopoly on modem technology... and it's better for consumers that these Chinese companies are allowed to compete. On the other hand, Qualcomm is a US company based in San Diego, California. I dislike the idea of Qualcomm being beholden to another countries anti-trust laws.

I wonder how much Tim Cook's visit to China had to do with this.
Click to expand...

Like everything else, this fine has varying levels of scumminess from both sides, especially from a one-party totalitarian state full of corrupt crooks.
 
It says they're going to pay the fine so I guess the damage isn't too bad. Can Qualcomm write this off on their taxes?
 
There is shit on all sides.

Qualcomm should not be bundling and forcing people to buy both there 3g and 4g patents at the same time.

Yet there are so many problems with why China did this. A lot of this was done to make an example with Qualcomm, to show the world that they can. It is like Eric Cartman and "respect my authority"

Sigh...

Just be glad these are 1st world problems. We have advanced to a state of humanity that we can pay 1 billion fines, and have cell phones. Just think in the 1980s they would have killed for a moto g and a cell phone network like we have today and the 1980s was still a very nice place to live.

It could be a whole lot worse, not saying this current world is shitty, but my today shitty is so much better than the 1890s, let alone the middle ages, the romans, or any culture in the BC times.

Doomer said:
It says they're going to pay the fine so I guess the damage isn't too bad. Can Qualcomm write this off on their taxes?
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To my understanding the answer is yes. Do not quote me for the nuances of tax law is bewildering. They purposefully make it complicated.
 
Qualcomm CEO to Chinese foreign minister: "You know, 2015 is a great time to be living. In the 1980s, they would have killed to be able to pay for patents like these, and use our technology. It could be a whole lot worse, not saying this current 4G patent trolling isn't shitty, but my today shitty is so much better than the 1890s, let alone the middle ages, the romans, or any culture in the BC times.

So you should definitely not fine us a billion dollars, ok?"
 
oobydoobydoo said:
Qualcomm CEO to Chinese foreign minister: "You know, 2015 is a great time to be living. In the 1980s, they would have killed to be able to pay for patents like these, and use our technology. It could be a whole lot worse, not saying this current 4G patent trolling isn't shitty, but my today shitty is so much better than the 1890s, let alone the middle ages, the romans, or any culture in the BC times.

So you should definitely not fine us a billion dollars, ok?"
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I am 100% agree, and think that China's legitimate complaints could be handed in a way that was not shitty and did not involve a billion dollars...but I am trying to look on the bright side, (this may have to do more with me with me and my personal situation and nothing to do with this new story with qualcomm and china, for I had a shitty week this last week so far.)

And as much as this should not happen, Qualcomm is on their top of their game and in a time of unprecedented growth. The world is not fair, this situation is not fair, but qualcomm made about 7 billion profit last year (depends on accounting with net income vs operating income) and has about 18 billion Cash on Hand/Short Term investments, so losing 1 billion is not the end of the world.

The world is not fair, the situation is not fair, the situation is shitty, one side of the situation is more shitty than the other.

But trying to assign blame or which side of the situation is more shitty is in the end counterproductive. Instead just take the loss, and move on, this is what Qualcomm needs to do, for if it get out of china to "spite china" they will lose far more than 1 billion dollars. They will lose more than 1 billion dollars for China is going to be a long term revenue source for Qualcomm.

There is an english idiom called "Don't cut off your nose to spite your face" that I think applies here.
 
They saw how the EU turned fines into a business model and decided it would work for them as well. ¯\_(&#12484😉_/¯

-KeithP
 
I don't think long term profits are there in China the way we keep hearing about it - even per the articles own admission, its part of a bigger strategy to make China the world leader in Chip Design.

At USD 1 Billion, its China saying that it can implement its own rules on its own terms. That is fine and fair, but if the playing field is skewed against foreign companies, then it really isn't a fair and even playing field.

That said, for the potential of short term profits, companies will hand over and agree to things that they'd never agree to anywhere else. It'll be interesting to see what happens to the world over the next 40 years from a technology standpoint - will the US still be the primary driver of computer technology?
 
So glad they were fined. Now that that's behind Qualcomm they can start printing money again. Stock was up big yesterday.
 
Everyone seems to draw conclusions without knowing what's going on. The NYT article is also opaque as to what exactly Qualcomm is punished for. Only the last paragraph gives a clue as to what the deal was about.

NYTimes said:
Generally, intellectual property holders charge clients different amounts based on the advantages they get in return. A large company like Apple might pay low fees to Qualcomm because of its huge market share and strong patent portfolio. A small company would pay much more for the same licenses. The new stipulation forces Qualcomm to charge a flat fee to companies selling certain types of branded phones in China.
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