FTC reduces penalties levied on Qualcomm for abusing its dominant market position

Qualcomm’s US headquarters and the Korea Fair Trade Commission. (graphic by Lee Jung-yoon)

Decision based on this year’s Supreme Court ruling prior to remand procedure

The Fair Trade Commission (FTC) reduced the amount of penalties against the US company Qualcomm for abuse of its dominant market position by 48.6 billion won (US$43.01 million).

Based on a Supreme Court ruling, the FTC announced on Mar. 21 that it had lowered the amount of penalties against Qualcomm for abuse of its dominant market status to 224.5 billion won (US$198.63 million) from the earlier amount of 273.1 billion won (US$241.61 million).

In December 2009, the FTC imposed 273.1 billion won in penalties against Qualcomm for abusing its dominant market position, including making rebates contingent on purchasing the majority of orders of modem and RF chips from the company during sales to mobile phone manufacturers and reducing telecommunications patent royalties on the condition that its own modem chips were used.

In late January 2019, the Supreme Court recognized unfair behavior in the modem chip rebate conditions, but remanded the case to the FTC after reversing the original court ruling on rebates contingent on RF chip purchasing.

While a remand trial has yet to be held, the FTC reportedly undertook initial administration measures respecting the gist of the Supreme Court’s judgment.

By Kwack Jung-soo, business correspondent

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