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Qualcomm is facing investigations on three fronts: US, EU, and China

Chipmaker Qualcomm is facing regulatory investigations in the U.S. and Europe in addition to an ongoing anti-monopoly probe in China. The company is struggling to collect royalties from its patent licensees in China, which accounts for half of its revenue. It hasn’t helped that Chinas National Development and Reform Commission (NDRC) has been investigating Qualcomm for the past year over complaints that it overcharges clients on patent fees.

Qualcomm Inc warned on Wednesday that an antitrust investigation and problems collecting royalties could harm its business in China next year and it also disclosed new regulatory investigations in the United States and Europe. China’s expanding high-speed 4G network is driving demand for smartphones with leading-edge technology, but Qualcomm’s opportunities have been clouded by an 11-month-old antitrust investigation there. Wall Street is worried. Qualcomm could face a fine of more than $1 billion in China as a result of the National Development and Reform Commission (NDRC) investigation, and the company could be forced to make concessions that would hurt its highly profitable business of charging royalties on phones that use its patents.

 

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