China is near to report on the business practices of Qualcomm after fourteen months of investigation. It is expected that the results might go against the well-known chip maker. The Chinese authorities might force for a fine of 1 billion over the anti competitive practices which will be the highest paid by any company.Last week talks were held between Qualcomm representatives and those of China’s National Development and Reform Commission (NDRC) stating “significant progress” will be made towards ending investigation. Apart from fine, company would be forced to cut down its royalty rates moreover they will make changes in licensing practices which will surely not damage the bottom line. The NDRC will soon announce the fine which would never hurt the company financials as half of its latest fiscal year revenue comes from China which is 26.5 billion.However, in China much of the revenue is earned through royalties and licensing. And the other two enforcements except fine might disrupt the company’s financial position.

China could fine Qualcomm for anti competitive practices