(By You Yunting) As we have already posted Judgment Abstract on NDRC’s Administrative Decision of Qualcomm Incorporated (Part 1) on April 17 2015, today we would like to introduce more.
III What’re the legitimate basis and the final decision?
Pursuant to Article 47 and Article 49 of the Anti-Monopoly Law, the NDRC made the following decisiosn against Qualcomm’s abuse of dominant market position in the SEPs markets and the baseband chip markets:
- Order Qualcomm a halt to illegal activities upon abuse of dominant market position as follows:
a Qualcomm shall provide patent lists to its licensees in China and not charge licensees for expired patents.
b Qualcomm shall not request its licensees in China to grant back their patents for reverse license to Qualcomm for free.
c Qualcomm shouldn’t insist on charging a high rate of licensing fee to calculate based on the net wholesale prices.
d Qualcomm shall offer licenses to its wireless communication related SEPs without bundling with other non-SEPs.
e Regarding the sale of baseband chips, Qualcomm shall not be allowed to request its licensees in China to enter into licensing agreements with unreasonable conditions, such as charging fees for expired patents, reverse patents for free, and unreasonable bundling with other non-SEPs, which constrain the licensees from challenging the agreements.
- Order Qualcomm a fine on the basis of 8% of its 2013 revenue in China.
Upon affirmation of the NDRC, Qualcomm took a sale revenue of RMB 76.101 billion in 2013 in China. The NDRC determined Qualcomm a fine of RMB 6.088 billion, which represented about 8% of its 2013 revenue in China, on the grounds of Qualcomm’s deeper level and longer lasting of abuse of market dominance and implementing monopolistic activities that eliminate and restrict competition.
To be Update
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