South Korea court upholds $873 million antitrust penalty for Qualcomm

A South Korean court on Wednesday upheld a record $873 million fine against U.S. chip giant Qualcomm for unfair business practices related to patent licensing and modem chip sales, rejecting the company’s appeal against the penalty. The ruling is a setback for Qualcomm as it battles customers over royalties and antitrust violations around the world, including an ongoing case brought by the U.S. Federal Trade Commission (FTC).

Seoul High Court Judge Noh Tae-ak rejected the company’s appeal against the penalty imposed by the Korea Fair Trade Commission (KFTC) in 2016 saying Qualcomm had abused its dominant market position. “The defendant exerted a significant influence over mobile phone manufacturers either through unfair relationships or making them depend on the defendant’s supplies of modem chipsets,” Noh said in his ruling.