SAN FRANCISCO/BEIJING: Qualcomm Inc has agreed to pay a fine of $975 million, the largest in China’s corporate history, ending a 14-month government investigation into anti-competitive practices.
The deal - the details of which were first reported by Reuters on Monday - also requires Qualcomm to lower its royalty rates on patents used in China, likely helping local smartphone makers such as Xiaomi Technology Co Ltd and Huawei Technologies Co Ltd.
Qualcomm said the agreement removes a major source of concern for its investors, sending shares of the San Diego-based chipmaker up 2.8 percent to $69 in after-hours trading.
China’s expanding high-speed 4G network is driving demand for smartphones with leading-edge technology, but Qualcomm’s opportunities have been clouded by the antitrust probe, which has also contributed to problems in collecting royalty payments from device makers.