TAIPEI (Taiwan News) – A settlement has been reached between the Fair Trade Commission (FTC) and the U.S. chipmaker Qualcomm over a lawsuit involving a record amount of fines slapped on the company for violations of the Fair Trade Act last October, reports said on Aug. 10.
The agreement would reverse a ruling by Taiwan’s antitrust regulator, which imposed an massive fine of NT$23.4 billion (US$773 million) on Qualcomm as a penalty for monopoly abuse in October 2017, reported Liberty Times.
FTC will keep the NT$2.73 billion (US$89 million) fines Qualcomm already paid, according to the settlement, and the company has promised to implement a five-year investment plan in Taiwan, the report said.
The plan encompasses development of the fifth-generation wireless technologies, support for cooperation with local companies and universities, and the establishment of operation and manufacturing centers in Taiwan – totaling an investment amount of about US$700 million, Liberty Times wrote.
Should Qualcomm fail to fulfill its pledge of industry cooperation and investment, FTC will resort to commercial arbitration, said the regulator.
Qualcomm still faces multiple lawsuits brought about by Apple, as well as anti-trust investigations in the U.S., E.U., and South Korea. FTC launched investigations into Qualcomm in 2015, which led to the largest fine ever targeting a single company, reported CNA.