US tech giant Qualcomm may face a fine of as much as $1 billion after antitrust regulators decide on its future.And it may also face sanctions that make it cut its royalties by a third.
Reuters reports that talks between Qualcomm and the authorities in China are close to reaching a conclusion.
The article quotes Xu Dunlin, head of China’s antitrust agency, as saying his authority will soon release details of the settlement.
The ruling will have a significant effect on Qualcomm because nearly fifty percent of its worldwide revenues from from the country.
Further, much of its profits come from royalties through its licensing division.
Reuters says that it’s not just Qualcomm that faces a problem from the Chinese agency. It is also investigating Microsoft and Samsung to see if they infringe its antitrust rules.
It’s estimated that Qualcomm generates over $25.5 billion in revenues from the Chinese mainland.
