Qualcomm was recently fined a record 1.03 trillion won by the Korea Fair Trade Commission, and it’s now emerged that as a result, Samsung and LG will be saving 1 trillion won (around $825 million) each year.
As if the country isn’t going through enough turmoil as it is – with a plastic-surgery-addicted president going through an impeachment process, not to mention the endless corruption scandals in her cabinet – the KFTC has fined Qualcomm a record sum in violation of fair competition in South Korea. We first reported the decision back in July, where Qualcomm was found guilty of several charges: bundling unnecessary patents and selling them to companies as well as charging licensing fees based on smartphone prices themselves instead of the prices of the patents in question.
Well, it looks like the recent ruling may save Samsung and LG 1 trillion won each year. According to reports, the chipmaker has collected 1 trillion won unfairly from these two South Korean companies each year. However, as The Investor explains, it is highly unlikely that this will affect smartphone prices. Although the two companies will technically save money each year, sources say that they won’t be benefiting financially as a whole.
However, as The Investor explains, it is highly unlikely that this will affect smartphone prices.
Interestingly, however, The Investor points out that Korean electronics companies like Samsung and LG themselves as well as US tech firms played a key role in the recent probe. The KFTC reportedly interviewed key clients from domestic companies as well as US ones like Apple, Nvidia, and Intel and these companies sent their executives to testify aganst Qualcomm in Seoul.
Although the main entities that are affected by the KFTC’s decision are Samsung and LG of course, it’s believed that US firms will also benefit directly from it. This isn’t the first time Qualcomm was fined such an astronomical sum; if you recall, it was fined a record $1 billion in China for anti-competitive licensing practices. It’s not yet clear whether this will impact Samsung’s partnership with the chip giant on Snapdragon 835.
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