Reuters: EU might join China in launching Qualcomm probe


Reuters reports EU antitrust regulators might launch a Qualcomm (QCOM -0.3%) probe following a complaint from Nvidia's Icera 4G baseband chip unit. One source says a case may be opened after this summer.

The report arrives amid signs of progress in Qualcomm's ongoing dispute with Chinese regulators. Authorities recently suggested Qualcomm has shown a willingness to improve its pricing (i.e. charge lower royalty rates) to end the dispute.

Cowen's Timothy Arcuri thinks accepting a lower rate is an acceptable compromise, given Qualcomm's recent Chinese issues. "QCOM would be better off to cede major swaths of royalties in China rather than jeopardize existing cash flows."

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Comments (2)
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    If they charge lower royalty rates will they be able to actually capture the payments to which they are entitled? In their most recent earnings report they seemed rather unhappy that unit sales of licensed chipsets in China were being fraudulently underreported.
    26 Aug 2014, 10:27 AM Reply Like
  • Howard Hunt
    , contributor
    Comments (98) | Send Message
     
    Good question--I'm retired now, and in all my years as a professional investor, I can't remember any convincing arguments to trust the Chinese
    26 Aug 2014, 01:36 PM Reply Like
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