700 million-dollar investment plan for university cooperation.
In October 2017, the Taiwan Fair Trade Commission (FTC) imposed a fine on Taiwan's antitrust record by using its market monopoly to deny products to customers who did not accept its licensing terms, violating local antitrust laws, and so on, by imposing a 23.4 billion NT (778 million US dollar) penalty. After the results of the punishment, the high leading to the Taiwan Intellectual Property Court to bring administrative proceedings, but the result does not affect the Taiwan Fair Trade Commission's punishment enforcement, in the course of administrative proceedings, Qualcomm still need to pay a fine.
Since then, Qualcomm said that due to a large amount, the 5-year 60 payment application and was approved by the Taiwan Fair Trade Commission. It is understood that this is the first time in the history of the Taiwan Fair Trade Commission to reconcile the case.
The settlement means that the actual penalty for Qualcomm by the Taiwan Fair Trade Commission has dropped from NT $23.4 billion ($ 778 million) to 2.73 billion NT dollars (about $89 million), with a significant reduction in the amount of fines paid. According to Taiwan's economic daily, Hong Gonglong, the Taiwan Fair Trade Commission, said Qualcomm is committed to a five-year, 700 million-dollar industrial investment programme in Taiwan, which includes 5G cooperation, new market expansion, cooperation with start-ups and universities, and the establishment of a Taiwan operations and Manufacturing Engineering Centre.
The industrial investment scheme and the total amount of NT $2.73 billion that have been paid have exceeded the original NT $23.4 billion.
As part of the settlement agreement, Qualcomm will continue to be allowed to charge licensing fees, and Qualcomm will provide reports to Taiwanese officials every six months over the next five years to show that it is communicating and negotiating well with the handset makers in the patent licensing.
Taiwanese analysts point out that the sky-high fine of NT $23.4 billion has fallen to NT $2.7 billion, but the promise of Qualcomm's agreement to comply with and implement the necessary patents for authorised mobile communications standards, to Taiwanese handset makers and chip makers, will help Taiwan's telecoms companies gain opportunities in the 5G.
Alex Rogers, executive vice president of Qualcomm and Director of Technology Licensing (QTL), said he was delighted to reach a reciprocal resolution with the Taiwan Fair Trade Commission, which is conducive to the further expansion of Qualcomm's business in Taiwan.
Currently, Qualcomm is mired in lawsuits involving rival Apple and many antitrust agencies around the world. In the United States, Apple has sued for 1 billion dollars in compensation, and Apple is suing Qualcomm for 1 billion yuan in China, and in this year's latest iphone product, Apple is abandoning Qualcomm's baseband chip products. In South Korea, Qualcomm faces a 1 trillion won ($ 885 million) penalty from antitrust agencies.