Qualcomm said the Taiwan Fair Trade Commission (TFTC) decided that “certain of the company’s business practices are in violation of Taiwanese competition law” and imposed a fine of $773 million.
“Qualcomm disagrees with the decision summarized in the TFTC’s press release and intends to seek to stay any required behavioral measures and appeal the decision to the Taiwanese courts after receiving the TFTC’s formal decision, which is expected in the next several weeks,” said Qualcomm.
“The fine bears no rational relationship to the amount of Qualcomm’s revenues or activities in Taiwan, and Qualcomm will appeal the amount of the fine and the method used to calculate it.”
Reuters reported that the Taiwanese decision is the latest challenge to Qualcomm’s business model, which involves selling chips and licensing a suite of patents related to how those chips are put into phones to provide mobile data to the device.
It is alleged by some that Qualcomm uses its dominant position in the market for modem chips to charge unfair royalty rates for its patents.