In October 2017, the Taiwan Fair Trade Commission used the market monopoly position to refuse to provide products to customers who did not accept the terms of its patent license, and violated local anti-monopoly regulations. Qualcomm was punished by NT$23.4 billion (US$778 million). The fine, set a record of the highest fines for Taiwan’s antitrust.
Today, Qualcomm and the Taiwan Fair Trade Commission announced that the two sides reached a settlement. After negotiations between the two parties, Qualcomm will not continue to pay the remaining fines after paying 2.73 billion Taiwan dollars (about 89 million US dollars) by the end of July. Qualcomm cancels the intellectual property court in Taiwan. The appeal, while Qualcomm promised to carry out a $700 million investment plan in the next five years including 5G, market expansion, and university cooperation in Taiwan.
MediaTek believes that Qualcomm has been disciplined by the competent authorities in accordance with the law of competition including the Fair Trade Law. All major international manufacturers and Taiwan-related manufacturers have also filed lawsuits against Qualcomm. The Taiwan Fair Trade Commission has violated the Qualcomm Act. However, the Taiwan Fair Trade Commission reached a litigation settlement with Qualcomm when Qualcomm failed to correct its illegal activities, and completely abandoned the original disposition, not only did not require the authorization of the component level, nor did it adjust the commercial mode of the whole machine charge. The failure to adhere to the law enforcement stance of maintaining fair competition, the company could not agree with this. Originally imposed a fine of 23.4 billion Taiwan dollars on Qualcomm, and now it is down to 2.73 billion Taiwan dollars, which is harmless to Qualcomm, and Qualcomm promises to Taiwan in 5 years. Investing in cooperation plans such as 5G, the result of this settlement is undoubtedly unfavorable to MediaTek. In MediaTek's view, it is naturally unhappy.
MediaTek reiterated that the company's high-tech R&D investment and manufacturing purchases for Taiwan exceed 200 billion yuan each year, and at the same time create more than 9,000 high-end research and development jobs. In addition, MediaTek is also an important key to Taiwan's future 5G and other related industries. Manufacturer.
MediaTek believes that the outcome of the settlement of the lawsuit will have a negative impact on the overall development of Taiwan's 5G and other related industries and global competitiveness.